Is the stock dividends that a company receives income that needs to be reported and where should I include it in the income statement?
Andrew Answered question
Yes, dividend income is considered the receipt of economic benefits and so like any other revenue is recognised by the receiving entity.
For most reporting entities, because this type of income does not form part of their normal operations it should be disclosed below operating profit or loss; just as interest generally is. This enables the user of the report to better evaluate the operating and non-operating sides of the entity.
Andrew Edited answer