alt Hacker NewsI explained this is a different comment. This is basic consolidation accounting per ASC 810-10-45.
https://dart.deloitte.com/USDART/home/codification/broad-tra...
I get that not everyone is an accountant or has had to become educated in accounting matters as part of their work, but you really shouldn't say "smells like creative accounting to me" if you don't have a basic understanding of the subject.
This is like the least interesting thing about OpenAI's financials, and Zitron framing it as some sort of mystery hinting at fraud is one of the least effective ways to make a point given that it's absolutely a nothingburger.
No loss is disappearing or being hidden. This is by-the-book consolidation accounting.
You have avoided answering the question.
The accounting mechanics are uninteresting, lots of normal accounting rules are abused for nefarious purposes (see Enron et al). What is interesting is why this was done.
Which subsidiary owns the loss and why?