The combination of these factors raises concerns over the profitability of Pirlo Co and any other subsidiaries in the group, as it appears to be loss making. Some of these losses will have been made through the loss of rental income through the new arrangement. The joining fee paid to Samba Co’s previous directors is a one-off cost paid by Pirlo Co. Consequently, it is included in the consolidated statement of profit or loss for the year ended 31 December 20X9. A similar amount was paid by Samba Co in the form of an annual bonus in the year ended 20X8. Therefore, 20X8 and 20X9 are comparable but the joining fee represents a cost saving for Pirlo Co in future years.