Dividend in specie

Dividend in specie

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What's the double entry for the receipient entity if a company distributes it's holding in a subsidiary.

For the distributing company I assume it's debit reserves and credit investment.

What is it for the recipient entity? Debit investment and credit....?

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Stepurhan
By stepurhan
11th Feb 2012 20:12

Still a dividend

It's still dividend income. It's just being received in a form other than cash.

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