This is not really a tax issue. If there is a profit, 42% will be subtracted from the net income VYSTAR as attributable to the minority interest. It won’t remain as retained earnings of the company, or in the case of Vystar that 42% can’t be used to reduce the accumulated deficit of the company....but instead as retained earnings of the minority interest.
This is not a hard concept. If you owned 42% of something you would be entitled to 42% of the profits of that something.
This is exactly what vystar is communicating to its shareholders.
They know the terms of their unique situation. People acting like they can recite GAAP rules for minority interest. Please find the rule that applies to the Rotman/Vystar scenario.
Vystar Corporation @VystarCompany · 1h Replying to @VystarCompany
@Kimber4510 and 4 others We have 4 CPS's that work on our books 2 accountants under them, a staff of 8+ doing accounting in house & a team of auditors. In addition, several outside consultants, including one hired to do a report (GAAP) on the acquisition, allocation of the assets & a proforma. $VYST 2 2 6
Vystar Corporation @VystarCompany · 1h Replying to @Kimber4510
@MTLTrader2 and 3 others Reporting of Minority Interest, this concept arises ONLY when the company prepares TWO SETS of financial statements Viz. A separate set of financial statements & a Consolidated Financial statement. Vystar is NOT at this time planing on anything but consolidated. $VYST 2 4
Vystar Corporation @VystarCompany · 4h Replying to @VystarCompany
@CaptBob2112 and 3 others The only other scenario (highly unlikely) that comes into play is if Vystar voted to do a special Rotmans only dividend (as a stand-alone entity) to just its shareholders, that would also be paid out to 42% owner. The odds of this happening are .0001%.
They will show all of the revenues, but there will be an adjustment before gain/loss to back out the minority interest, there is no choice in the matter as it is required per US GAAP
The portion of the profits/losses goes to the minority interest owner and is not attributable to VYST or its shareholders.
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