berneyarms
Established Member
All true, but it is also true today that there is considerable scope to allocate Group level expenses between subsidiaries so as to massage the level of reported profits. Not saying that this happened in the case of PCB, but it would be difficult to spot if it were.
Could I suggest that you re-read the earlier posts that are linked to in my post.
Allocating group level expenses would reduce subsidiary profits.
The claims being made above to which I responded were that PCB operating profits were higher due to cash injections from the parent. Your example would be the complete opposite effect to that mentioned, and to be honest as such irrelevant to this discussion.
That is before you consider that it isn’t possible to consider such injections as income in arriving at operating profit.