Grouping of Profit Sharing Arrangment

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Dear Sir,

Can you please Guide.... Share of profit from profit sharing arrangement between two Company  for sale of Product is classified under other Income or Sales.?

 

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On 15 April 2021 at 12:14 Report
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This discussion explores how to classify profit earned from a profit-sharing arrangement between two companies for product sales. The core question is whether this profit should be reported as 'Sales' or 'Other Income'. The consensus leans towards classifying it as 'Income' rather than 'Sales', as it represents earned profit based on the agreed-upon share.

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Chartered Accountant
24588 Points Posted on 15 April 2021
It should be shown as Income not sales as it is the profit which have earned according to the share of profit as per arrangement
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On 15 April 2021 at 12:52
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My grammar is 💯 good I
7306 Points Posted on 15 April 2021

Sales Revenue= parent + subsidiary

Profits attributable to shareholders / owners equity= NCI method

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On 15 April 2021 at 13:51

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