(v1190.00) Dividends from Investments: Cost

This nonoperating income statement item refers to dividends received from long-term investments in companies over which the investing company lacks “significant influence,” presumably holding less than 20% of the stock and intending to hold it for years. These investments are reported on the Balance Sheet in Investments: Cost Method (v2430).

If the investment is in marketable equity securities, the investing company reports the investments based on acquisition cost or market value, whichever is less. If the investment is in the form of nonequity or nonmarketable securities, it is reported at acquisition cost. Dividends from these investments are treated as revenue.