Transfer Pricing Concept

AFM Definition, Scope & Accounting Standards including Ind AS Free JAIIB Capsule 28 views Updated
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AFM · Definition, Scope & Accounting Standards including Ind AS
What does Transfer Pricing refer to in a multidivisional organisation or multinational company?
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It refers to the pricing of goods and services for cross-border transactions between different divisions of the same multi-entity company.
It is used to evaluate branch/division performance and manage tax liabilities. Governments regulate it to stem the flow of taxation revenue overseas.
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Transfer Pricing Concept — Full Text

What does Transfer Pricing refer to in a multidivisional organisation or multinational company?

Answer

It refers to the pricing of goods and services for cross-border transactions between different divisions of the same multi-entity company.

Additional notes

It is used to evaluate branch/division performance and manage tax liabilities. Governments regulate it to stem the flow of taxation revenue overseas.

Part of Accounting & Financial Management for Bankers · Definition, Scope & Accounting Standards including Ind AS · Last updated

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