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During the consolidation process, we eliminate the debt and interest payments received from affiliated companies. My question to you is do you agree with this
During the consolidation process, we eliminate the debt and interest payments received from affiliated companies.
My question to you is do you agree with this elimination. If the Parent/Subsidiary is willing to lend money to each other for a stated interest rate (sometimes lower than market), why should we eliminate it? Should the standards be changed? If I borrow from the market, my interest rate could be higher and that would stay on consolidated return. So what is the harm?
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