In the case of an investment in equity securities where the investor does not have significant influence and the investment is carried at fair value,a dividend from the investee is: January 1, 2023 by admin A reduction of the carrying amount of the investment. Income to the investor in the period of declaration. An expense to the investor in the period of declaration. A direct increase to retained earnings of the investor to offset the direct decrease to retained earnings of the investee. See Answer Income to the investor in the period of declaration.