Tony, I call bullsh!t on your binary choice false paradigm. The world is grey, not black and white. It is a question of language, definitions and fine print.
The following AASB extract will demonstrate that the accounting standards give large scope & flexibility to an organisation for its own internal accounts. Provided the internal policies meet the what is required under the standard, the auditor can sign-off. The organisation can then go and make public statements about their profit on their loss on the basis of "The Standard" by external examination. So it is a question of what "The Standard" allows. This is not be a binary OR choice as you assert. It is a game of words, footnotes and subtleties.
Normally the internal accounting machinations are "netted out on consolidation", and thus have no effect on overall P&L of the entity. However, when those internal accounts are used to prosecute an Industrial Relations or other agenda, a much closer look needs to be taken at those accounts, and what "The Standard" says. The Standard says revenues & expenses can be allocated on a
reasonable basis. Define
reasonable in a highly complex operating system involving hundreds of internal entities operating across multiple opaque jurisdictions with revenues in multiple currencies. Do you really believe an external auditor could reasonably be expected to have the ability to verify the reasonableness of all internal segment revenues and expenses?
I am
not alleging any illegality, just the opposite. All the groups you mention are operating completely within the law & accounting standards,
to the letter. However, the letter of the law gives much flexibility. It is a question of what the The Standard says. These groups are not lying, however, equally they haven't provided any evidence as to the basis of their assertions.
Because these statements cannot be falsified on the information provided, they are completely without meaning.
It is remarkably simple, release the internal accounts for QF International including footnotes. Without these accounts, there is no way to verify what effect segment accounting has its or any other group entities P&L within the overall group structure.
Without the accounts including notes, segment P&L cannot be determined.
AASB 114 Segment Reporting
Look closely at the definition of Segment Revenue & Segment expenses [pages 12 ~ 13]
Segment accounting policies are the accounting policies adopted for preparing and presenting the financial reports of the consolidated group or entity as well as those accounting policies that relate specifically to segment reporting.
17. The definitions of
segment revenue segment expense segment assets and segment liabilities include amounts of such items that are directly attributable to a segment and amounts of such items that can be allocated to a segment on a reasonable basis. An entity looks to its internal financial reporting system as the starting point for identifying those items that can be directly attributed, or reasonably allocated, to segments. That is, there is a presumption that amounts that have been identified with segments for internal financial reporting purposes are directly attributable or reasonably allocable to segments for the purpose of measuring the segment revenue, segment expense, segment assets, and segment liabilities of reportable segments.
18. In some cases, however, a revenue, expense, asset, or liability may have been allocated to segments for internal financial reporting purposes on a basis that is understood by entity management but that could be deemed subjective, arbitrary, or difficult to understand by external users of financial reports. Such an allocation would not constitute a reasonable basis under the definitions of segment revenue, segment expense, segment assets, and segment liabilities in this Standard. Conversely, an entity may choose not to allocate some item of revenue, expense, asset, or liability for internal financial reporting purposes, even though a reasonable basis for doing so exists. Such an item is allocated pursuant to the definitions of segment revenue, segment expense, segment assets, and segment liabilities in this Standard.