Net Profit or Loss Sample Clauses
The Net Profit or Loss clause defines how the financial outcome of a business activity, project, or agreement is calculated by subtracting total expenses from total revenues. In practice, this clause outlines which revenues and costs are included in the calculation, such as operating income, direct costs, and allowable deductions, and may specify the accounting methods to be used. Its core function is to provide a clear and consistent method for determining the financial results, ensuring transparency and preventing disputes over how profits or losses are measured and distributed.
Net Profit or Loss. The net profit or net loss of the company for each fiscal year will be determined according to the accounting principles employed in the preparation of the company’s federal income tax information return. No special provision will be made for tax-exempt or partially tax-exempt income. The profit or loss, as well as any items thereof that must be separately stated under IRC § 1366(a), will be allocated to the members in proportion to the ownership shares held by each of them.
Net Profit or Loss. Each Party shall bear (and be entitled to) fifty percent (50%) of Net Profit or Loss in the United States. The JCC with input and support from the Finance Working Group shall review quarterly reports of actual results submitted by the Parties and review and discuss potential discrepancies, reasonable forecasting, and other finance and accounting matters, in accordance with the Financial Exhibit and Section 7.2.2 below, as applicable, to determine the reimbursement due, if any, to a Party for each such Calendar Quarter, and shall establish procedures with respect to the reconciliation of Net Profit or Loss in the United States (the “Profit Reconciliation Procedures,” and together with the Development Reconciliation Procedures and the Medical Affairs Reconciliation Procedures, the “Reconciliation Procedures”).