Derry Limited, a company that prepares its financial statements to 31 December each year, agreed a profit-sharing plan with its employees on | January 2017, Under the terms of the plan, the company agreed to pay 10% of its profit after tax on a pro rata basis to staff who had been employed throughout the whole year. While on 1 January 2017 Derry Limited had 500 employees, only 300 of these employees were still employed by the company on 31 December 2017. Derry Limited’s profit after tax for year ended 31 December 2017 was €1,000,000.

Requirement How should Derry Limited recognise the profit-sharing plan at 31 December 20175