DIVIDEND RECOGNISATION:

A Ltd invested in equity shares of the B Ltd. B Ltd declared dividend on30.11.14. Right to receive dividend is established before the31.12.14 but dividend is received from B Ltd  on25.01.15.  A ltd seeks your advise as per the  IAS18 about when to recognise the dividend in their books . As A Ltd financial year  2014 books closing on  31.12.14.

A.When the right to receive the dividend is established

B. When Investee Company declared the dividend.

C. on cash basis i.e. when received

D.None

E. A ltd can recognise as per their choice.