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1) what is a profit share? and if an entity has agreed to give profit shares to directors who are shareholders in second year what will be accounting entries?
2) how will a bonus payment to directors that is dependent on profit figure for coming year be accounted for? and why?
If I understand your question correctly, surely this is a simple matter of estimating profit for the year, multiplying by the profit share agreed %age, and accruing for that best estimate at the end of the year.
Is this what you meant?
If not, give me a question name that has prompted your question and I can look at and see if I can better explain the suggested solution
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