Target Profit meaning

Question Answer This Checklist is for in-house lawyers. It helps you gauge how well you grasp the key finance and accounting concepts you are likely to encounter day to day, and how they apply within the business. Use it to spot knowledge gaps-both technical and business-specific-and to prioritise what to tackle next so you can contribute more effectively to commercial discussions. Assess your current confidence level honestly; this will show you where to concentrate your learning. Some questions test awareness of concepts, others explore how you have used this knowledge practically; use both to target your development. If several areas feel uncomfortable, that is common and fixable. See Practice Notes: Introduction to business finance and accounting-financial accounting and external performance and Introduction to business finance and accounting-management accounting and internal decision-making for guidance on the essentials of business finance and accounting, and why this matters for in-house lawyers. See: Improving your financial literacy-checklist for practical steps that you can take to improve your financial literacy and understanding of how...

SC Arcomet Towercranes SRL v Direcţia Generală Regională a Finanţelor Publice Bucureşti, Administraţia Fiscală pentru Contribuabili Mijlocii Bucureşti , Case C-726/23 This case examined the VAT treatment linked to transfer pricing between a Belgian parent and its Romanian subsidiary. SC Arcomet Towercranes SRL (Arcomet Romania) procured cranes for onward sale or hire to customers, while its parent, Arcomet Belgium, delivered a range of commercial support. In 2010, a transfer pricing analysis established a target profit margin corridor for Arcomet Romania. Where profitability exceeded that corridor, Arcomet Belgium raised an equalisation invoice to align results with the agreed transfer pricing policy. In total, three invoices were issued: two were accounted for by Arcomet Romania under the reverse charge, while the third was regarded as outside the scope of VAT...

In this issue: JCT contracts Building safety Litigation Construction industry news Daily and weekly news alerts LexTalk®Construction: a Lexis®Nexis community New and updated content Construction trackers JCT contracts The JCT Target Cost Contract 2024—an introduction On 25 June 2025, the JCT unveiled its long-awaited Target Cost Contract 2024 family. This is the JCT’s first target cost form, marking a significant expansion of its portfolio. This piece highlights the principal characteristics of the suite, notably its remuneration and difference sharing arrangements. See News Analysis: The JCT Target Cost Contract 2024—an introduction. RIBA publishes blog post on new JCT 2024 contract guides RIBA has issued a blog post on four new guides to the JCT 2024 contract suite, produced by RIBA Publishing. The guides span the Standard Building Contract, Design and Build Contract, Intermediate Building Contract, and Minor Works Building Contract. Each guide explains subject-based provisions, procedures, and conditions, sets out the contractual duties and...

The most common reasons for entering into derivatives are for the purposes of: Speculation — when a party seeks exposure to a given variable, for example taking a view on a commodity’s future price on the assumption it will rise or fall over a chosen period Hedging — aiming to offset exposure to the risk of an unfavourable shift in a variable, or to stabilise expected outcomes over time Arbitrage — seeking to take advantage of price discrepancies (between markets, or within the same market over time) to earn profit or cut costs, or where one participant can reach a price or market unavailable to another, including where prices differ over time Exposure to asset classes — obtaining access to a target market (eg commodities, shares, property) without incurring the expense, complexity and formalities associated with those markets, avoiding the same costs and complications Derivatives are commonly used alongside lending arrangements for hedging purposes in practice. In this context, the primary...

A UK-based purchaser of an overseas business should evaluate the following tax considerations: the prospective overseas and UK tax outlays linked to the acquisition tax-efficient ways to repatriate profits from the overseas entity to the UK buyer a tax-efficient exit strategy maximising the tax-efficiency of the target business This Practice Note is written from a UK tax perspective and also flags typical overseas tax points to address, including reporting, filing and compliance obligations. Local advice should be obtained in each jurisdiction in which the target operates. Overseas and UK tax costs associated with the acquisition of an overseas business The common UK and overseas tax costs relevant to acquiring an overseas business are summarised below. Transfer taxes Share acquisitions may attract local transfer or registration taxes, usually calculated as a percentage of the consideration for those shares, together with notary fees...

What is a prime cost contract? Put simply, where a deal is let on a ‘prime cost’ basis, the contractor recovers the expenditure it incurs in delivering the works — such as labour and materials (including those supplied by sub‑contractors) — plus a management fee on top to cover overheads and profit. This differs from the usual lump sum arrangement, under which the employer and contractor fix the total contract price payable to the contractor at the outset (subject to any clauses permitting adjustments as the works proceed) and the contractor bears the risk of any rise in the cost of the works. Management contracting is a common setting for prime costs in practice. The management contractor is remunerated with a fee for its services plus the prime costs it incurs in performing its functions. Those costs include amounts paid to the works contractors for the works they carry out. See Practice Note: Management contracting. A prime cost arrangement is generally viewed as equivalent to a ‘cost plus’...