Allocations
In section Section 4.2: Allocations, it said
The current reading expands on the allocation concept for the additional items below:
LRC and CSM must be determined at the group level
FCFs may be determined at a different level, then allocated to groups
does it mean that FCF can be calculated on portfolio level, then it is allocated to groups. after we get the FCF by group, we can determine LRC and CSM at group level ?
Thank you.
Comments
yup you are spot on