Transfer pricing
•Download as PPTX, PDF•
0 likes•380 views
Transfer price is the amount recorded in the company’s accounting records when one business unit sells goods or services to another business unit.
Report
Share
Report
Share
Recommended
Accounting management: Transfer Pricing Exercise
The document describes a situation at GreenWorld Inc., a nursery products firm with three divisions. The Southern Division recently acquired a plastics factory that manufactures pots. The Western Division manager, Rosario, asked the Southern Division manager, Lorne, for a lower internal transfer price of $70 per box of pots instead of the $75 per box price from external vendors.
Lorne's plastics factory has a unit cost of $63 per box and can sell externally at $75 per box. At full production capacity, Lorne should not lower the internal transfer price since he can sell everything externally at the higher price. If the factory is currently selling 16,000 boxes, the minimum transfer price is $53 (
Transfer pricing
This document provides an overview of transfer pricing. It defines transfer pricing as the price at which divisions of a company transact with each other. The document outlines several purposes of transfer pricing, including evaluating division performance and shifting profits between tax jurisdictions. It also discusses transfer pricing methods, influences on companies, disadvantages, and provides an example to illustrate how transfer pricing can benefit a company.
Transfer pricing
Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise.
Lecture 8 responsiblity accounting and transfer pricing
The document discusses various types of responsibility centers used within companies, including cost centers, profit centers, and investment centers, and how performance is measured for each. It also covers challenges in setting appropriate transfer prices between different divisions within a company and how transfer prices can be used to minimize total tax liability for multinational companies.
Presentation on Transfer Pricing
The document provides an overview of transfer pricing regulations in India. It discusses:
1) The legal framework governing transfer pricing, including key sections of the Income Tax Act relating to computation of income from international transactions at arm's length prices.
2) The procedures involved in transfer pricing assessments, including reference to the transfer pricing officer, draft order process, and appeal mechanisms.
3) Methods for determining arm's length prices for international transactions, including comparable uncontrolled price method, resale price method, cost plus method, profit split method, and transactional net margin method.
4) Requirements for transfer pricing documentation and the accountant's role in furnishing transfer pricing reports as required by section 92E of
Chapter#5
Dokumen tersebut membahas tentang pusat laba sebagai unit organisasi yang bertanggung jawab atas pendapatan dan biaya tertentu. Pusat laba dapat berupa divisi bisnis, unit fungsional, pemasaran, produksi, dan layanan tertentu yang diberi otonomi untuk menghasilkan laba melalui keputusan operasional. Ada berbagai pengukuran kinerja dan batasan yang diterapkan untuk memastikan pusat laba beroperasi secara efektif.
Ppt for bcg & ge nine cell matrix
This document provides an overview and comparison of the BCG Growth-Share Matrix and GE 9-Cell Matrix portfolio analysis tools. The BCG Matrix uses industry growth rate and relative market share to categorize businesses into Stars, Cash Cows, Question Marks, and Dogs. It encourages viewing a firm as a collection of cash flows but oversimplifies some factors. The GE 9-Cell Matrix adds long-term industry attractiveness and business strength as dimensions, allowing intermediate rankings. It suggests investment priorities but provides no specific strategy guidance. Both tools have limitations around being static rather than dynamic analyses.
Bcg and spotlight matrix
The document discusses the BCG Matrix and GE Nine Cell Matrix, which are tools for analyzing corporate portfolios. The BCG Matrix uses market share and industry growth to categorize businesses into four types: stars, cash cows, question marks, and dogs. The GE Nine Cell Matrix expands on this by using three categories for industry attractiveness (high, medium, low) and business strength (strong, average, weak), resulting in nine cells. This allows for a more nuanced analysis compared to the four cells of the BCG Matrix. The document then explains each matrix's benefits, limitations, and how they compare to each other.
Recommended
Accounting management: Transfer Pricing Exercise
The document describes a situation at GreenWorld Inc., a nursery products firm with three divisions. The Southern Division recently acquired a plastics factory that manufactures pots. The Western Division manager, Rosario, asked the Southern Division manager, Lorne, for a lower internal transfer price of $70 per box of pots instead of the $75 per box price from external vendors.
Lorne's plastics factory has a unit cost of $63 per box and can sell externally at $75 per box. At full production capacity, Lorne should not lower the internal transfer price since he can sell everything externally at the higher price. If the factory is currently selling 16,000 boxes, the minimum transfer price is $53 (
Transfer pricing
This document provides an overview of transfer pricing. It defines transfer pricing as the price at which divisions of a company transact with each other. The document outlines several purposes of transfer pricing, including evaluating division performance and shifting profits between tax jurisdictions. It also discusses transfer pricing methods, influences on companies, disadvantages, and provides an example to illustrate how transfer pricing can benefit a company.
Transfer pricing
Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise.
Lecture 8 responsiblity accounting and transfer pricing
The document discusses various types of responsibility centers used within companies, including cost centers, profit centers, and investment centers, and how performance is measured for each. It also covers challenges in setting appropriate transfer prices between different divisions within a company and how transfer prices can be used to minimize total tax liability for multinational companies.
Presentation on Transfer Pricing
The document provides an overview of transfer pricing regulations in India. It discusses:
1) The legal framework governing transfer pricing, including key sections of the Income Tax Act relating to computation of income from international transactions at arm's length prices.
2) The procedures involved in transfer pricing assessments, including reference to the transfer pricing officer, draft order process, and appeal mechanisms.
3) Methods for determining arm's length prices for international transactions, including comparable uncontrolled price method, resale price method, cost plus method, profit split method, and transactional net margin method.
4) Requirements for transfer pricing documentation and the accountant's role in furnishing transfer pricing reports as required by section 92E of
Chapter#5
Dokumen tersebut membahas tentang pusat laba sebagai unit organisasi yang bertanggung jawab atas pendapatan dan biaya tertentu. Pusat laba dapat berupa divisi bisnis, unit fungsional, pemasaran, produksi, dan layanan tertentu yang diberi otonomi untuk menghasilkan laba melalui keputusan operasional. Ada berbagai pengukuran kinerja dan batasan yang diterapkan untuk memastikan pusat laba beroperasi secara efektif.
Ppt for bcg & ge nine cell matrix
This document provides an overview and comparison of the BCG Growth-Share Matrix and GE 9-Cell Matrix portfolio analysis tools. The BCG Matrix uses industry growth rate and relative market share to categorize businesses into Stars, Cash Cows, Question Marks, and Dogs. It encourages viewing a firm as a collection of cash flows but oversimplifies some factors. The GE 9-Cell Matrix adds long-term industry attractiveness and business strength as dimensions, allowing intermediate rankings. It suggests investment priorities but provides no specific strategy guidance. Both tools have limitations around being static rather than dynamic analyses.
Bcg and spotlight matrix
The document discusses the BCG Matrix and GE Nine Cell Matrix, which are tools for analyzing corporate portfolios. The BCG Matrix uses market share and industry growth to categorize businesses into four types: stars, cash cows, question marks, and dogs. The GE Nine Cell Matrix expands on this by using three categories for industry attractiveness (high, medium, low) and business strength (strong, average, weak), resulting in nine cells. This allows for a more nuanced analysis compared to the four cells of the BCG Matrix. The document then explains each matrix's benefits, limitations, and how they compare to each other.
Transfer pricing
The document discusses transfer pricing within multinational companies. It begins by introducing the team members working on transfer pricing. It then provides definitions of key terms like transfer price and arm's length price. It discusses how transfer pricing is used for different purposes like calculating divisional profits, international taxation, and regulatory issues. The document outlines India's transfer pricing model and laws, and describes various transfer pricing methods like comparable uncontrolled price method, resale price method, cost plus method, and profit split method. It provides an example of transfer pricing and penalties for non-compliance. Finally, it discusses a case study of a client restructuring its transfer pricing between India and Europe.
Resposibility accounting
The document discusses responsibility accounting and transfer pricing. It describes how large businesses are divided into responsibility centers to help managers control smaller operational areas. Responsibility accounting provides information to plan, control operations, and evaluate manager performance. Centers are classified as cost centers, profit centers, or investment centers depending on their control over costs and revenues. The document also discusses transfer pricing between internal divisions and how the negotiated price affects each division's reported profits.
presentation on responsibility accounting
This document provides an overview of responsibility accounting including its meaning, features, types of responsibility centers, transfer pricing methods, and advantages. Key points:
- Responsibility accounting assigns revenues and costs to those responsible and divides organizations into responsibility centers like cost, profit, and investment centers.
- It uses both planned and actual data, identifies controllable vs. uncontrollable costs, and determines transfer prices for goods exchanged internally.
- Responsibility accounting improves performance, aids cost planning, enables delegation while retaining control, and holds individuals accountable for results.
6. transfer pricing
Transfer pricing refers to the prices charged for goods and services transferred between divisions within the same company. There are several approaches to setting transfer prices, including using market prices, cost-based prices, negotiated prices, or administered prices set by a rule. The objectives of transfer pricing are to provide accurate performance measurement for each division, encourage goal congruence between divisions, and mimic external market prices. Key considerations include using transfer prices that motivate optimal sourcing and production decisions for the entire company.
Transfer pricing concept and practice
This is an attempt to explain the broad concept of and rationale behind Transfer Pricing Regulations. Also gives a high level view of the scheme of Indian Transfer Pricing Regulations as on date. Points out the TP controversies in India. Above all gives a well spirited guidance on dealing with TP in India.
Transfer Pricing
Transfer pricing refers to the prices charged for goods and services transferred between divisions of a multinational company operating across international borders. The objectives of transfer pricing include reducing taxes, managing cash flows, and avoiding conflicts with governments. Common transfer pricing methods are market-based prices, cost-based prices, and negotiated prices. Transfer pricing allows companies to shift profits between countries to minimize taxes but also presents challenges in terms of performance measurement and conflicts with tax authorities.
Management control system
A management control system integrates accounting tools to set goals, measure performance, and evaluate results to ensure managers and employees work to achieve organizational objectives; it establishes responsibility centers, develops financial and non-financial performance measures, and provides feedback to adjust to changes. The document outlines the key components of an effective management control system, including specifying goals and objectives, measuring controllable costs and uncontrollable costs, using both financial and non-financial metrics, and periodically reviewing the system.
Bcg, ge & ansoff
The document discusses three portfolio analysis models: the BCG matrix, Ansoff matrix, and GE matrix.
The BCG matrix classifies businesses based on their relative market share and market growth rate as Stars, Cash Cows, Question Marks or Dogs. The Ansoff matrix describes four growth strategies: market penetration, market development, product development, and diversification.
The GE matrix evaluates businesses based on their industry attractiveness and competitive strength. Industry attractiveness considers factors like market growth and risk, while competitive strength looks at a company's assets, market share and costs. It sorts businesses into nine categories for strategic planning purposes.
Transfer Pricing
This document provides information about transfer pricing for an international business course. It defines transfer pricing as the prices charged for transactions between related parties, and notes that over 75 countries have adopted rules to monitor such transactions due to concerns about tax avoidance. The key methods for determining arm's length prices are described, including comparable uncontrolled price, resale price, cost plus, transactional net margin, and profit split methods. The document also discusses transfer pricing regulations in Bangladesh and notes that transfer pricing considerations extend beyond taxation to include management accounting and organizational impacts.
Transfer pricing bsr_co
The document discusses transfer pricing in India. It begins with an introduction to transfer pricing, noting that it refers to the pricing of cross-border transactions between related entities. The price must be comparable to what unrelated parties would charge, known as the arm's length price. It then provides an overview of India's transfer pricing regulations, including the introduction of legislation in 2001 based on OECD guidelines. Key points covered include the definition of associated enterprises, identification of international transactions, and the methods used to determine arm's length pricing such as comparable uncontrolled price, resale price, cost plus, transactional net margin, and profit split methods. The document also includes two case studies applying these methods.
Introduction to Transfer pricing
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Singapore Transfer Pricing
This is an overview of transfer pricing mechanisms, providing guidelines to follow arm’s length principle and documentation to be maintained for the purpose of audits
Transfer pricing
Transfer pricing refers to the price at which goods and services are transferred between divisions within the same organization. There are several methods of transfer pricing, including cost price, cost plus a markup, standard cost, market rate, shared profit relative to cost, and negotiated prices. Transfer pricing is needed for organizations with geographically dispersed divisions, multiple divisions with various requirements, and decentralized organizations where each department is responsible for its own profits.
Horngrenima14e ch10
This chapter discusses management control systems in decentralized organizations. It covers the benefits and costs of decentralization, including lower-level managers having better local information but also potential for inefficient decisions. Responsibility centers and incentives are key parts of control systems. Performance measures and rewards should encourage managerial efforts that further organizational goals. Transfer pricing systems, including market-based, cost-based and negotiated prices, aim to align decisions across divisions. Multinational companies also consider tax implications in transfer pricing. Management by objectives and carefully set budgets can help motivate managers' performance.
Imach10web
This document discusses management control in decentralized organizations. It covers several key points:
1) Decentralization delegates decision making to lower levels which has benefits like better local knowledge but also costs like potential misaligned decisions.
2) Companies find balancing decentralization in some areas with centralization in others works best.
3) Performance measures and incentives should be carefully designed to motivate managers' efforts toward the overall organization's goals.
4) Transfer pricing between organizational units requires consideration of costs, market prices, and tax implications.
Costing sem 2.pdf
The document discusses various performance measurement techniques and cost accounting concepts. It begins by defining performance measurement as a scientific approach to assess how well an organization is achieving its objectives. It then lists common performance measures like effectiveness, efficiency, quality, and productivity. Next, it discusses advantages of performance measurement techniques like identifying customer requirements and areas for improvement. It also explains concepts like cost control, cost reduction, uniform costing, inter-firm comparison, and cost audit. Cost control aims to maintain costs within budgets while cost reduction permanently lowers costs. Uniform costing allows comparison between firms and inter-firm comparison evaluates firm performance. Cost audit verifies cost accounting records for accuracy.
Educational content and educational content
This document discusses international transfer pricing between related parties. It covers key topics like transfer pricing objectives and methods, tax implications, and government regulations. The learning objectives are to understand how transfer pricing impacts performance evaluation and cost minimization, how discretionary transfer pricing can be used for tax avoidance, government reactions to this, and the main transfer pricing methods used for tangible goods.
Effective Pricing Strategies for eCommerce
Pricing strategy for eCommerce is one of the most fascinating topics for any business or marketing professional. It is a marketing tool and the most efficient way to improve conversion rate optimization. By applying various pricing approaches, your business will be more efficient, profitable and sustainable in the market.
presentation on pricing
The document discusses pricing strategies and methods. It outlines several pricing strategies including penetration pricing, premium pricing, price skimming, and value pricing. It also describes various pricing methods such as cost-based pricing, demand-based pricing, and competition-based pricing. The document provides examples of how different companies have implemented pricing strategies. It emphasizes that setting the right price is important for business success and outlines the basic steps in setting a product price, including determining objectives, estimating demand and costs, analyzing competitors, selecting a pricing method, and determining the final price.
UNEC__1681280374.pptx.ppt
This document discusses various pricing methods used by firms. It covers cost-based methods like cost-plus pricing and mark-up pricing. It also discusses demand-based pricing, competition-based pricing, value pricing, target-return pricing, and breakeven pricing. The document provides examples and explanations of how different pricing methods are calculated and can be applied by organizations.
Issues in Global Management Accounting - Transfer Pricing
Transfer pricing refers to prices set for transactions between related business entities. There are three main methods for setting transfer prices: market-based, which uses public prices for similar goods; cost-based, which uses production costs; and negotiated prices. International transfer prices must be set as if the entities were independent to allow each government to receive tax revenue. Regulations require analyzing transfer prices to show the method used reflects an arm's length transaction between unrelated parties.
Transfer Pricing in Singapore
Transfer pricing refers to the determination of prices at which goods, services and intangible properties are transacted between related parties. When unrelated parties deal with each other, independent market forces shape the commercial pricing of such transactions. However, in transactions involving related parties, their commercial and financial relations may lead to the setting of prices that deviate from independent commercial prices.
More Related Content
Viewers also liked
Transfer pricing
The document discusses transfer pricing within multinational companies. It begins by introducing the team members working on transfer pricing. It then provides definitions of key terms like transfer price and arm's length price. It discusses how transfer pricing is used for different purposes like calculating divisional profits, international taxation, and regulatory issues. The document outlines India's transfer pricing model and laws, and describes various transfer pricing methods like comparable uncontrolled price method, resale price method, cost plus method, and profit split method. It provides an example of transfer pricing and penalties for non-compliance. Finally, it discusses a case study of a client restructuring its transfer pricing between India and Europe.
Resposibility accounting
The document discusses responsibility accounting and transfer pricing. It describes how large businesses are divided into responsibility centers to help managers control smaller operational areas. Responsibility accounting provides information to plan, control operations, and evaluate manager performance. Centers are classified as cost centers, profit centers, or investment centers depending on their control over costs and revenues. The document also discusses transfer pricing between internal divisions and how the negotiated price affects each division's reported profits.
presentation on responsibility accounting
This document provides an overview of responsibility accounting including its meaning, features, types of responsibility centers, transfer pricing methods, and advantages. Key points:
- Responsibility accounting assigns revenues and costs to those responsible and divides organizations into responsibility centers like cost, profit, and investment centers.
- It uses both planned and actual data, identifies controllable vs. uncontrollable costs, and determines transfer prices for goods exchanged internally.
- Responsibility accounting improves performance, aids cost planning, enables delegation while retaining control, and holds individuals accountable for results.
6. transfer pricing
Transfer pricing refers to the prices charged for goods and services transferred between divisions within the same company. There are several approaches to setting transfer prices, including using market prices, cost-based prices, negotiated prices, or administered prices set by a rule. The objectives of transfer pricing are to provide accurate performance measurement for each division, encourage goal congruence between divisions, and mimic external market prices. Key considerations include using transfer prices that motivate optimal sourcing and production decisions for the entire company.
Transfer pricing concept and practice
This is an attempt to explain the broad concept of and rationale behind Transfer Pricing Regulations. Also gives a high level view of the scheme of Indian Transfer Pricing Regulations as on date. Points out the TP controversies in India. Above all gives a well spirited guidance on dealing with TP in India.
Transfer Pricing
Transfer pricing refers to the prices charged for goods and services transferred between divisions of a multinational company operating across international borders. The objectives of transfer pricing include reducing taxes, managing cash flows, and avoiding conflicts with governments. Common transfer pricing methods are market-based prices, cost-based prices, and negotiated prices. Transfer pricing allows companies to shift profits between countries to minimize taxes but also presents challenges in terms of performance measurement and conflicts with tax authorities.
Management control system
A management control system integrates accounting tools to set goals, measure performance, and evaluate results to ensure managers and employees work to achieve organizational objectives; it establishes responsibility centers, develops financial and non-financial performance measures, and provides feedback to adjust to changes. The document outlines the key components of an effective management control system, including specifying goals and objectives, measuring controllable costs and uncontrollable costs, using both financial and non-financial metrics, and periodically reviewing the system.
Bcg, ge & ansoff
The document discusses three portfolio analysis models: the BCG matrix, Ansoff matrix, and GE matrix.
The BCG matrix classifies businesses based on their relative market share and market growth rate as Stars, Cash Cows, Question Marks or Dogs. The Ansoff matrix describes four growth strategies: market penetration, market development, product development, and diversification.
The GE matrix evaluates businesses based on their industry attractiveness and competitive strength. Industry attractiveness considers factors like market growth and risk, while competitive strength looks at a company's assets, market share and costs. It sorts businesses into nine categories for strategic planning purposes.
Viewers also liked (8)
Similar to Transfer pricing
Transfer Pricing
This document provides information about transfer pricing for an international business course. It defines transfer pricing as the prices charged for transactions between related parties, and notes that over 75 countries have adopted rules to monitor such transactions due to concerns about tax avoidance. The key methods for determining arm's length prices are described, including comparable uncontrolled price, resale price, cost plus, transactional net margin, and profit split methods. The document also discusses transfer pricing regulations in Bangladesh and notes that transfer pricing considerations extend beyond taxation to include management accounting and organizational impacts.
Transfer pricing bsr_co
The document discusses transfer pricing in India. It begins with an introduction to transfer pricing, noting that it refers to the pricing of cross-border transactions between related entities. The price must be comparable to what unrelated parties would charge, known as the arm's length price. It then provides an overview of India's transfer pricing regulations, including the introduction of legislation in 2001 based on OECD guidelines. Key points covered include the definition of associated enterprises, identification of international transactions, and the methods used to determine arm's length pricing such as comparable uncontrolled price, resale price, cost plus, transactional net margin, and profit split methods. The document also includes two case studies applying these methods.
Introduction to Transfer pricing
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Singapore Transfer Pricing
This is an overview of transfer pricing mechanisms, providing guidelines to follow arm’s length principle and documentation to be maintained for the purpose of audits
Transfer pricing
Transfer pricing refers to the price at which goods and services are transferred between divisions within the same organization. There are several methods of transfer pricing, including cost price, cost plus a markup, standard cost, market rate, shared profit relative to cost, and negotiated prices. Transfer pricing is needed for organizations with geographically dispersed divisions, multiple divisions with various requirements, and decentralized organizations where each department is responsible for its own profits.
Horngrenima14e ch10
This chapter discusses management control systems in decentralized organizations. It covers the benefits and costs of decentralization, including lower-level managers having better local information but also potential for inefficient decisions. Responsibility centers and incentives are key parts of control systems. Performance measures and rewards should encourage managerial efforts that further organizational goals. Transfer pricing systems, including market-based, cost-based and negotiated prices, aim to align decisions across divisions. Multinational companies also consider tax implications in transfer pricing. Management by objectives and carefully set budgets can help motivate managers' performance.
Imach10web
This document discusses management control in decentralized organizations. It covers several key points:
1) Decentralization delegates decision making to lower levels which has benefits like better local knowledge but also costs like potential misaligned decisions.
2) Companies find balancing decentralization in some areas with centralization in others works best.
3) Performance measures and incentives should be carefully designed to motivate managers' efforts toward the overall organization's goals.
4) Transfer pricing between organizational units requires consideration of costs, market prices, and tax implications.
Costing sem 2.pdf
The document discusses various performance measurement techniques and cost accounting concepts. It begins by defining performance measurement as a scientific approach to assess how well an organization is achieving its objectives. It then lists common performance measures like effectiveness, efficiency, quality, and productivity. Next, it discusses advantages of performance measurement techniques like identifying customer requirements and areas for improvement. It also explains concepts like cost control, cost reduction, uniform costing, inter-firm comparison, and cost audit. Cost control aims to maintain costs within budgets while cost reduction permanently lowers costs. Uniform costing allows comparison between firms and inter-firm comparison evaluates firm performance. Cost audit verifies cost accounting records for accuracy.
Educational content and educational content
This document discusses international transfer pricing between related parties. It covers key topics like transfer pricing objectives and methods, tax implications, and government regulations. The learning objectives are to understand how transfer pricing impacts performance evaluation and cost minimization, how discretionary transfer pricing can be used for tax avoidance, government reactions to this, and the main transfer pricing methods used for tangible goods.
Effective Pricing Strategies for eCommerce
Pricing strategy for eCommerce is one of the most fascinating topics for any business or marketing professional. It is a marketing tool and the most efficient way to improve conversion rate optimization. By applying various pricing approaches, your business will be more efficient, profitable and sustainable in the market.
presentation on pricing
The document discusses pricing strategies and methods. It outlines several pricing strategies including penetration pricing, premium pricing, price skimming, and value pricing. It also describes various pricing methods such as cost-based pricing, demand-based pricing, and competition-based pricing. The document provides examples of how different companies have implemented pricing strategies. It emphasizes that setting the right price is important for business success and outlines the basic steps in setting a product price, including determining objectives, estimating demand and costs, analyzing competitors, selecting a pricing method, and determining the final price.
UNEC__1681280374.pptx.ppt
This document discusses various pricing methods used by firms. It covers cost-based methods like cost-plus pricing and mark-up pricing. It also discusses demand-based pricing, competition-based pricing, value pricing, target-return pricing, and breakeven pricing. The document provides examples and explanations of how different pricing methods are calculated and can be applied by organizations.
Issues in Global Management Accounting - Transfer Pricing
Transfer pricing refers to prices set for transactions between related business entities. There are three main methods for setting transfer prices: market-based, which uses public prices for similar goods; cost-based, which uses production costs; and negotiated prices. International transfer prices must be set as if the entities were independent to allow each government to receive tax revenue. Regulations require analyzing transfer prices to show the method used reflects an arm's length transaction between unrelated parties.
Transfer Pricing in Singapore
Transfer pricing refers to the determination of prices at which goods, services and intangible properties are transacted between related parties. When unrelated parties deal with each other, independent market forces shape the commercial pricing of such transactions. However, in transactions involving related parties, their commercial and financial relations may lead to the setting of prices that deviate from independent commercial prices.
Chap_9_Current_Issues_in_Tax_TP___APA.pptx
This document discusses transfer pricing guidelines issued by the Malaysian Inland Revenue Board (IRBM). It provides an overview of key concepts related to transfer pricing such as controlled transactions between associated persons, the arm's length principle, and transfer pricing methods acceptable to the IRBM like comparable uncontrolled price method, resale price method, cost plus method, profit split method and transactional net margin method. It emphasizes the importance of contemporaneous documentation and advance pricing arrangements to support transfer prices and reduce audit risks.
Chap_9_Current_Issues_in_Tax_TP___APA.pptx
This document discusses transfer pricing and advance pricing arrangements (APAs). It provides an overview of transfer pricing guidelines issued by the Malaysian Inland Revenue Board (IRBM) and acceptable transfer pricing methods, including comparable uncontrolled price, resale price, cost-plus, profit split, and transactional net margin methods. It also explains the importance of adhering to documentation requirements and the arm's length principle. Additionally, the document outlines the benefits of APAs for multinational companies, such as providing certainty on appropriate transfer pricing methodology and alleviating double taxation between countries.
The Ultimate Guide to Transfer Pricing Methods for Business Success
The Ultimate Guide to Transfer Pricing Methods for Business SuccessManish Anil Gupta & Co. - A CA firm in Delhi, India
This document discusses transfer pricing and provides guidance on mastering it. Transfer pricing involves setting the right prices for transactions between related entities in different countries. It is a strategic tool that can help businesses minimize tax risks and maximize profits if implemented properly. The document outlines the two-pillar framework adopted by the OECD to harmonize transfer pricing principles globally. It also explains the five main transfer pricing methods and highlights advantages and disadvantages of each to help choose the most appropriate one. The overall message is that mastering transfer pricing through guidance from experts can help businesses navigate global tax regulations and thrive internationally.Transfer Pricing Vikram Sankhala
Transfer pricing regulations aim to ensure multinational companies pay appropriate taxes based on real economic activity in each country. When tax rates differ between countries where a multinational operates, there is an incentive to shift profits to low tax jurisdictions. To prevent tax losses, many countries have introduced transfer pricing laws governing prices on cross-border transactions between related entities. The arm's length principle requires related party transactions be priced as if they occurred between unrelated parties. Various transfer pricing methods, like comparable uncontrolled price method and cost plus method, can be used to determine the arm's length price applicable to related party deals.
Pricing decisions
Pricing Decisions - Introduction to Pricing, Pricing methods, Pricing procedure and pricing strategies
Managerial decision making
This document discusses various managerial accounting concepts related to cost behavior analysis, decision making, and pricing strategies. It defines three types of cost behavior - fixed costs that do not vary with production, variable costs that vary with production, and mixed costs that have attributes of both. Decision making concepts covered include make-or-buy, keep-or-drop, special order pricing, and product mix decisions. Cost-volume-profit analysis and relevant costing are also summarized. Finally, different pricing strategies such as cost-based pricing, value-based pricing, and strategic pricing are defined.
Similar to Transfer pricing (20)
Issues in Global Management Accounting - Transfer Pricing
Issues in Global Management Accounting - Transfer Pricing
The Ultimate Guide to Transfer Pricing Methods for Business Success
The Ultimate Guide to Transfer Pricing Methods for Business Success
More from Aurus Network
Mapping Questions from UPSC Mains 2015 exam with SuperProfs Premium Study Mat...
1. The document provides sample questions from the UPSC Mains General Studies papers along with relevant answers from SuperProfs Premium Study Material.
2. It includes 10 questions each from Paper I, Paper II, and Paper III of the UPSC Mains exam, covering topics like natural resources, water scarcity, tourism, labour migration, federalism, ordinances, UNSC reforms, NGO regulation, healthcare, poverty alleviation, education, subsidies, and cyber security among others.
3. For each question, the document provides the relevant section from the SuperProfs study material that could help in answering the UPSC question comprehensively. This allows for an effective paper-wise comparison of the exam questions
JEE Advanced 2015
JEE Advanced 2015, the second stage of the two-tier IIT JEE test, will be conducted by the seven zonal Indian Institutes of Technology (IITs) under the guidance of the Joint Admission Board 2015.
Water Resources Engineering
Water resources engineering is concerned with the management of water and land resources both in rural and urban watersheds.
Theory of Comparative Advantage
The theory of comparative advantage, first developed by English economist David Ricardo in 1817, is a theory about the potential gains from trade for companies, countries or people that arise on account of differences in factor endowments or technological progress.
Income From House Property
The Income Tax Act of India categorizes income into five different heads and income from house property is one of them. The rent that is received from any property is taxable under income from house property.
Measure of Central Tendency
Central tendency refers to the typical or average value of a data set and can be measured using the mean, median, or mode. The mean is calculated by adding all values and dividing by the number of values, the median is the middle value of a data set arranged in order, and the mode is the most frequently occurring value.
Wealth Tax
A wealth tax is imposed on the total value of personal assets that an individual possesses in a given nation. In India, the Wealth Tax Act of 1957 levies the tax on the net wealth of all individuals, Hindu undivided families, and companies. Assets subject to wealth tax in India include urban land, residential houses, cars, aircraft, jewelry, bank deposits, corporate stock, pension plans, guest houses and more.
Dividend
Dividend refers to the a sum of money that is paid regularly by an organization to its shareholders out of its profits or reserves. It is a portion of an organization’s earnings to its shareholders.
Current Account
Current account is among the two components of a country’s balance of payments, the other being the capital account.
Gross Domestic Product
The Organisation for Economic Co-operation and Development has defined gross domestic product as “an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs).”
Fixed Assets
Fixed assets are those assets whose useful life exceeds one reporting period and which cannot be easily converted to cash.
Opportunity Cost
Opportunity cost is defined as the value or profit of something that must be forgone to acquire something else.
Weighted Average Cost of Capital
Weighted average cost of capital (WACC) is the calculation of a company’s cost of capital whereby every source of capital is proportionately weighted.
Accounting Cycle
Accounting cycle - this is a term given to the step-by-step process of recording and processing of economic transactions of a company. The accounting cycle helps in the creation of useful financial information in the form of financial statements.
Business Process Management
Business Process Management aims to make a company’s workflow more efficient and effective. A business process may be defined as a network of value-added activities undertaken to achieve specific business goal.
Standard Costing
Standard costing involves setting cost standards for business activities and analyzing actual costs against these standards. Variances represent the differences between actual and standard costs, and can be favorable if actual costs are lower or unfavorable if higher. Variances are classified into categories like direct material, labor, and overhead variances.
International Financial Reporting Standards
The International Financial Reporting Standards are a set of international accounting standards used by businesses in the preparation of financial statements.
Working Capital
Working capital is used to measure the money available with a business to run its everyday operations. An organization’s efficiency, liquidity and overall health are measured by calculating the working capital.
Babu Jayendran
Babu Jayendran has been teaching Systems Audit for over 20 years. He completed his B.Sc (Hons) in mathematics from IIT Kharagpur in 1970.
More from Aurus Network (19)
Mapping Questions from UPSC Mains 2015 exam with SuperProfs Premium Study Mat...
Mapping Questions from UPSC Mains 2015 exam with SuperProfs Premium Study Mat...
Recently uploaded
The History of Stoke Newington Street Names
Presented at the Stoke Newington Literary Festival on 9th June 2024
www.StokeNewingtonHistory.com
clinical examination of hip joint (1).pdf
described clinical examination all orthopeadic conditions .
Hindi varnamala | hindi alphabet PPT.pdf
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...Nguyen Thanh Tu Collection
https://app.box.com/s/y977uz6bpd3af4qsebv7r9b7s21935vdANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Introduction to AI for Nonprofits with Tapp Network
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
The Diamonds of 2023-2024 in the IGRA collection
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Advanced Java[Extra Concepts, Not Difficult].docx
This is part 2 of my Java Learning Journey. This contains Hashing, ArrayList, LinkedList, Date and Time Classes, Calendar Class and more.
Types of Herbal Cosmetics its standardization.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit - NGV Pavilion Concept Design
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Recently uploaded (20)
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
Transfer pricing
- 1. Transfer Pricing Compiled by SuperProfs.com Learn from India’s Best PLreoaferns sfororms India’s Best Professors
- 2. About transfer pricing Transfer price is the amount recorded in the company’s accounting records when one business unit sells goods or services to another business unit. Over 60 governments across the globe have adopted Learn from India’s Best Professors transfer pricing rules. Transfer prices usually do not to vary much from the market price, otherwise one of the entities in the transaction will lose out.
- 3. Transfer pricing is often aimed at: Evaluating financial performance of different divisions of a conglomerate Shift earning to a low tax jurisdiction from Learn from India’s Best Professors a high tax one
- 4. Arm’s length principle Arm’s length principle is a principle involved in transfer pricing. This principle states that the amount charged by one related company to another must be the same as if the two companies were unrelated. Learn from India’s Best Professors
- 5. Methods to calculate arm’s length price Comparable Uncontrolled Price Method Resale Price Method Cost Plus Method Profit Split Method Transactional Net Marginal Method Learn from India’s Best Professors
- 6. To watch lecture videos related to Accounting and related concepts, visit SuperProfs.com NOW! Learn from India’s Best PLreoaferns sfororms India’s Best Professors