Profit Interests: A Practice Aid

Profits interests are an increasingly popular form of incentive compensation granted by partnerships and limited liability companies.  This practice aid offers a practical approach to assessing profits interests in light of U.S. GAAP compensation guidance.

This Practice Aid has not yet been updated for the issuance of ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. Please see our Bulletin, FASB Clarifies Scope Application of Profits Interest and Similar Awards, for more guidance.

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