Cash dividends received from investments in companies for which the Equity Method of accounting is used.
Under this method, the company's initial investment is recorded at acquisition cost. In each period, the account value increases automatically by the amount in Earnings from Investments: Equity (v2420.03) on the Balance Sheet, the account that recognizes the company's proportionate share of the earnings of the stock-issuing company.
Dividends recorded in Dividends from Subsidiaries (v2420.05), reduce the balance in this investments account.
Further adjustment may be necessary to ensure that the account balance reflects the lower of historic cost or market value as required by APB 18.