After deducting non-recurring gains and losses, the total net profit attributable to the parent company is the total net profit attributable to shareholders of the parent company. Non-recurring gains and losses include gains and losses arising from non-daily business activities, such as one-off events such as asset sale and debt restructuring. This index is helpful to evaluate the company's operating performance more accurately and eliminate the non-recurring factors that may distort the company's real operating conditions. The total net profit after deduction reflects the company's pure and sustainable profitability.
Calculation method of net profit after deduction;
1. Deduct non-recurring gains and losses: exclude non-recurring gains and losses from the company's financial statements, which usually include one-time investment income, asset disposal income, fines, donations, etc. ;
2. Attribution to the owner of the parent company: it means that after deducting non-recurring gains and losses, only the net profit attributable to the shareholders of the listed company is calculated, excluding minority shareholders' rights and interests;
3. Total net profit: refers to the total net income of the company in a certain accounting period, that is, the total profit of the company after deducting the total cost and expenses.
To sum up, the total net profit attributable to the parent company after deducting non-daily business activities is the net profit actually enjoyed by the shareholders of the parent company, which helps investors and analysts to evaluate the normal operating performance and sustainable profitability of the company more truly.
Legal basis:
People's Republic of China (PRC) Accounting Standards for Business Enterprises
Article 34
An enterprise shall prepare a net profit statement after deducting non-recurring gains and losses, and disclose it in relevant documents.