Pre acquisition dividend
Share capital	30000	Share capital	15000
Retained profits	15000	Retained profits	3500
	45000		18500

Shares in S Ltd	18500	Assets	20000
Dividend receivable[1]	1500		20000
Other assets	25000	Provision for dividend	1500	Liability to subsidiary[2]
	45000		18500


Fair value of INA acquired	$1500 share capital + $3500 retained profits
	$18,500
Cost of acquisition	$18,500

Central TAFE:
Parent recognises an asset.As the dividend is from pre acquisition equity, no revenue is regognised by the parent.

Central TAFE:
Liability to subsidiary