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Explanation: This is obviously a line item of a company that is controlled by another, and has entered into a profit transfer agreement ("Gewinnabführungsvertrag")with the controlling company.
=> Income from assumption of losses (previous year: expenses for transfer of profit)
Own experience in translating annual reports
Ralf Lemster Germany Local time: 18:28 Native speaker of: German PRO pts in pair: 2684
8 mins confidence:
shifting of profits
"(2) Section 1.446-1(d)(3) provides that if, by reason of
maintaining different methods of accounting, there is a creation or
shifting of profits or losses between the trades or businesses of
the taxpayer (for example, through inventory adjustments, sales,
purchases, or expenses) so that income of the taxpayer is not
clearly reflected, the trades or businesses of the taxpayer are not
separate and distinct."
"More specifically though, the presence of imperfect competition implies that firms can make positive economic profit. Strategic trade policies typically involve the shifting of profits from foreign firms to domestic firms. In this way national welfare can be improved although it is often at the expense of foreign countries."