044. End Of Congruent Reporting Of Dividend Income

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In one of its rare decisions on commercial accounting law, the German Federal Court of Justice (Bundesgerichtshof) held more than 20 years ago that a parent company was under certain circumstances entitled to show a dividend receivable from its controlled subsidiary even though no shareholder resolution had yet been adopted by the subsidiary authorising the dividend. The general idea behind the concept was that, provided certain definite indications were present, the subsidiary intended to declare a dividend for the fiscal year just elapsed, that the parent should show the dividend as received in the same fiscal year for which it was paid.