You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Profit‑sharing percentage on the income statement that differs from the ownership percentage?

Hello,

Is there a supported way to apply a profit‑sharing percentage on the income statement that differs from the ownership percentage? For example, an entity with 49/51 ownership but a 90/10 profit‑sharing arrangement that should affect only the P&L and not the balance sheet. What is the recommended configuration or approach for this?

Scenarios

  1. ParentEntityA, the ownership remains 49% CompanyA and 51% CompanyB. However, we want to introduce a profit-sharing arrangement of 90% for CompanyA and 10% for CompanyB, which will only impact the income statement.

  1. ParentEntityB, where the ownership is 100% CompanyA, we also want to add a profit-sharing scheme of 90% for CompanyA and 10% for CompanyB, affecting the income statement only.

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!