CERTYNEX IFRS ACADEMY

Ralmira, a holding company with no industrial activity, earns most of its income as dividends from unconsolidated investments (case data). Which classification of dividends received is most defensible?

Financing, since the holding company finances its subsidiaries.

Outside the statement, dividends being recognised as finance income.

Investing necessarily, the shares being long-term assets held to earn a return on them.

Operating, dividends being its main source of income (permitted choice, applied consistently).