Question · Arm's length statement

The management of Pivoine SA wants to write in the note: "All transactions with related parties were made on normal market terms." Its only basis is that prices were set by management using its knowledge of the market. In addition, the margin earned on sales to a subsidiary is 4 points lower than on sales to third parties, with no documented explanation. Write a note concluding on whether this sentence is appropriate, separating case facts, rule and judgement.