noun
Definition 1
Profit attributable to the shareholders of the parent company.
Source: Invertext
Context: Operating profit rose by over 24%, after taking into account EUR275 million in fair value adjustments to securities, while attributable net profit was up by more than 46%, including fair value adjustments of EUR200 million.
Source: goliath.ecnext.com
Note
In this expression, frequently seen in English translations of French or Spanish P&L statements, the need for qualifier 'net' is arguable, given that the profit due to minority interests is always deducted after tax. Also, accounting rules in English-speaking countries do not normally accept the profit attributable to a certain number or proportion of the shareholders of a consolidated group as constituting a self-explanatory category of profit. Spanish accounting does, if not overtly, at least tacitly. Consequently, the standalone expression "attributable profit" or "attributable net profit" is in the majority of cases a word-for-word translation of the Spanish equivalent, of questionable meaning in English. Where the reporting company formally reports in Spanish and the English-language version is presented as a mere courtesy to non-Spanish speaking shareholders, no serious problem arises. However, in the case of ADRs trading on US exchanges, or where the company is actively seeking funds from English-speaking investors, to avoid unnecessary complications it is advisable to anglicise the expression, stating not simply that a proportion of profit is attributable but to whom that proportion is attributable.
Sinónimos
attributable earnings 1 , attributable profit 1 , attributable result 1
Appears in the following subjects