The company could choose to treat this similar to other intra-entity transfers of assets as we learned about previously and use the direction of the transaction to determine whether or not it should impact the noncontrolling interest. In this case, the sale is from the subsidiary to the parent, so it is considered upstream and could justify the allocation of part of the loss to the noncontrolling interest. However, the decision to reacquire Swanson's bonds on the open market came from Penston's President and CFO having concerns about Swanson's debt-to-equity ratio, so the subsidiary was not responsible for the decision and therefore the resulting loss.

What do you think about this statement? Do you agree or disagree?