3 ms·

Or they spin off sort-of-separate entities to move the profits around (Hollywood Accounting)

• epa 13y ago
  Not allowed. Any related parties have to be disclosed and will be removed on consolidation of financial statements. Unless both parties are totally separate entities with no relation, we are moving into fraud territory.
• tsotha 13y ago
  That only works between entities in different countries, though they can use the strategy to dodge liabilities.