The accounting complexity is an issue that surfaces with investors every several years. But just because it is complex does not necessarily mean it is bad. The structure allows for several advantages: it lowers the groups tax rates, it allows spin offs of subsidiaries and it allows individual companies to access capital markets easier, with their parent companies' support. The group's activities and non-cash charges can impact earnings, so cash flow is a better metric to focus on. If we look at BN, its operating cash flow has risen from $2.8B in 2015 to $9.3B in the past 12 months. There also can't be any argument that the group has created substantial shareholder value in the last 20 years. Nothing is perfect, of course, and we need to watch the group's real estate exposure. But the worry over accounting is perhaps overdonee and offset largely by strong execution and cash flow.
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