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
- 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.
- 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.
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