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+--- Thread: Profit Sharing (/showthread.php?tid=7930)
Profit Sharing - Saad Siddiqui - 05-04-2010
"A" is a Public Limited company
"B" is associated undertaking
"C" is holding company of "B" but not of "A"
"A" has no linkage and association with "C"
"C" passed a policy directing "B" to incorporate funded affairs by "C" in the Books of Accounts of "B". And to submit Financial Statements of the same as separate as a regular Accounting and Audit.
Also declared profit sharing ratio of 12.
Question is
Can "B" do such accounting in its Book and how?
If Yes, then how?
If No, then what are the legal and corporate laws that does not allow such exercise?
Does "A" observes the same as for "B"?
If Yes, then what would be its accounting and audit standing?
If No, then what are the basis "A" can rely on?