At 31 December 20X6, Fayardine, which controls its subsidiary, decides that it will pay it a dividend of 600,000 in 20X7 out of profits already included in consolidated profit; the dividend will be taxed at 5% in Fayardine (data). No liability had been recognised until then. Record the entry in the consolidated financial statements.
- Dividend decided by the parent
- 600,000
- Tax on the distribution in the parent (%)
- 5 %