PROFIT SHARING STATEMENT Clause Samples
A Profit Sharing Statement clause outlines the process and requirements for providing a detailed account of profits generated under an agreement. Typically, this clause specifies when and how the statement must be delivered, what financial information it should include, and the frequency of reporting—such as quarterly or annually. Its core function is to ensure transparency and accountability in the distribution of profits, allowing all parties to verify their entitled share and reducing the risk of disputes over financial calculations.
PROFIT SHARING STATEMENT. The Contractor shall prepare with respect to each Quarter a Profit Sharing Statement containing the following information:
PROFIT SHARING STATEMENT. 6.4.1 The Licensee shall prepare with respect to each Calendar Quarter a profit sharing statement containing the following information:
(a) The total amount of Profit Petroleum to be shared between the Government and the Licensee in the Calendar Quarter in question.
(b) The amount of Profit Petroleum due to the Government and the Licensee as well as to each constituent of the Licensee in the Calendar Quarter in question.
6.4.2 The profit sharing statement shall be submitted to Government not later than thirty (30) days after the end of such Calendar Quarter.
6.4.3 The Licensee shall prepare an annual profit sharing statement containing the following information:
(a) The calculation of the applicable net income as defined in Article 12 for the Calendar Year.
(b) The R-Factor at the end of the Calendar Year.
(c) The total amount of Profit Petroleum to be shared between the Government and the Licensee for the Calendar Year.
(d) The amount of Profit Petroleum due to the Government and the Licensee as well as to each constituent of the Licensee for the Calendar Year.
(e) The annual statement shall be submitted as part of end of year statement under Section 6.5 of this Accounting and Financial Procedure within ninety (90) days after the end of each Calendar Year.