CanadaDisney05
DIS Veteran
- Joined
- Mar 20, 2017
However, they are all part of the same corporation, and they certainly could work out the internal accounting.
This!
Yes Disney treats DVC as it's own company but ultimately it's all under the same leadership. DVC/DVD is constrained in what they can do with respect to timeshare law, but there is absolutely nothing preventing them from a make-good internally. Whether they SHOULD is a different question, but certainly they COULD.
It's actually pretty complex within a company the size of Disney under accounting rules for publicly traded companies. This isn't you Venmoing someone for your share of drinks.
While the complexities of doing the accounting for transfer pricing can be complex, at the end of the day Disney is one corporate umbrella. Leadership setup a financial and legal structure as part of a larger strategy, but along with forming that structure comes some drawbacks that they were well aware of. Setting up the organization this way was a matter of choice, not a requirement. I don't think as a consumer we should be letting Disney off the hook because of the complexities of transfer pricing. As a consumer, I don't care that these are different legal entities. At the end of the day, its the same leaders making decisions and the same shareholders profiting off of the structure leadership setup.
Edit: Just to be clear so I don't contradict myself. I don't believe that Disney is obligated to give anything to DVC members who's points expired, but I do think it would be a gesture of goodwill. I however, don't buy into the BS excuse that they can't give away things like tickets, or hotel rooms, or dining plans, or whatever else because these are profit centre's from separate entities. Resorts can charge DVC full price to satisfy transfer pricing rules. Outside of some potential negligible tax issues, it doesn't really matter if one entities' revenue is higher and one is lower this year. At the end of the day, shareholders earn the same profit, and any management's compensation can be made whole by the higher ups.
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