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While calculating FCF for foreign appraisal which involves sales from parent to subsidy, the selling price is deducted just before tax for subsidy, and the profit is added before profit for parent.
If the situation is reversed and the subsidy sells to the parent, then what happens?
As with all income of the subsidiary, it increases the profit of the subsidiary before tax.
As far as the parent is concerned, as with all expenses it reduces their profit before tax.
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