Split off point

In the context of production, a split-off point is the point at which joint products appear in the production process.

Example:

When the Entity is carrying on the business with two subsidiaries,one subsidiary is making huge profits and another subsidiary making huge losses.....while preparing the financial statements of the company, the company showing no profit and no loss,and these will not attract the investors.The company got the idea to form independent companies so that it can be easily measurable and it can decide the future of the companies and where developments required for the companies.