TAILIEUCHUNG - Lecture Fundamentals of cost accounting - Chapter 15: Transfer pricing

We saw in Chapter 12 that a decentralized firm delegates decision-making authority to subordinates. With this delegation of authority comes the risk of managers making decisions based on their individual goals that can be sub-optimal for the organization as a whole. One example of dysfunctional decision-making occurs when business units or divisions within the organization buy goods and services from one another and each unit or division manager is evaluated on reported profits. In this chapter we address this potential problem. | Transfer Pricing Chapter 15 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin We saw in Chapter 12 that a decentralized firm delegates decision-making authority to subordinates. With this delegation of authority comes the risk of managers making decisions based on their individual goals that can be sub-optimal for the organization as a whole. One example of dysfunctional decision-making occurs when business units or divisions within the organization buy goods and services from one another and each unit or division manager is evaluated on reported profits. In this chapter we address this potential problem. Transfer Pricing . 1 Explain the basic issues associated with transfer pricing. Transfer price: The value assigned to the goods or services sold or rented (transferred) from one unit of an organization to another. Treatment is the same as a sale to an outside customer. – Revenue to the selling unit – Cost to the buying unit 15 - When business units or divisions within the organization buy goods and services from one another, the value or amount recorded in a firm’s accounting records as revenue to the selling unit and cost to the buying unit is called the transfer price. Although this is recorded as revenue to one unit and cost to another unit, both units are part of the organization and the transfer has no impact on the firm. Because the exchange takes place within the organization, the firm has considerable discretion in setting the transfer price. And, of course, the question is: What price is optimal? The Setting . 2 Explain the general transfer pricing rules and understand the underlying basis for them. Padre Papers Wood Division Paper Division Trees Paper Wood for making paper 15 - Let’s use Padre Papers to study transfer-pricing rules. Suppose Padre Papers has two divisions, the Wood Division that processes trees and sells wood and the Paper Division that buys wood for manufacturing paper. .

• Kế toán - Kiểm toán
• Transfer pricing
• Optimal transfer price
• Cost accounting
• Fundamentals of cost accounting
• Cost analysis
• Cost management systems
• Transfer pricing decision making
• Transfer Pricing Law
• Foreign direct investment enterprise
• Transfer mispricing in Vietnam
• FDI enterprises in Vietnam
• Transfer pricing methods
• Practical aspects
• Business facets
• Comparable uncontrolled price method
• Resale price method
• Cost sharing
• Profit methods
• Development guidelines
• Transactional net margin method
• Transfer pricing penalties
• Advanced transfer pricing
• Finance accounting and Auditing
• FDI Companies
• Fixed assets
• Economic Cooperation and Development (OECD)
• Transfer pricing phenomenon
• Corporate tax rate differentials
• Transfer pricing activities
• Foreign direct investment enterprises
• Foreign direct investment enterprises in Vietnam
• Lecture Advanced management accounting
• Bài giảng Kế toán quản trị nâng cao
• Advanced management accounting
• Transfer prices
• Market based transfer prices
• Tiểu luận Kế toán quản trị
• Kế toán quản trị
• Giá chuyển nhượng (Transfer pricing)
• Specific investment
• Principal agent analysis
• Performance evaluation
• Principal’s perspective
• Transaction transfer pricing policies on corporate organizations tax in Nigeria
• Corporate organizations tax in Nigeria
• The organizations' business growths
• Descriptive research model
• Bulletin report on fifty
• Summary of Economic Doctor thesis
• Summary of Doctor thesis
• Counteracting transfer pricing
• Corporate income tax in Viet Nam
• Corporate income tax
• Economics and business
• Tax incentives policies
• Tax avoidance
• FDI enterprises
• Foreign investors
• Tax obligation
• Service transactions
• Intangible assets
• White Paper
• Temporary Regulations
• Proposed Regulations
• Dispute Resolution
• Acquired Assets
• International accounting
• Lecture International accounting
• International transfer pricing
• Cost minimization
• PRICING PRACTICES
• SELECTED INDUSTRIES
• thesis
• internship reports
• project course
• graduate thesis
• taxing business
• airline reservations
• the fact patterns
• business models
• pricing methods
• business profits
• Horngren’s cost accounting
• A managerial emphasis
• Strategic profitability analysis
• Management control systems
• Pricing decisions
• Horngren’s cost accounting
• Business income
• Investment income
• treaty network
• United States
• Direct Investment
• Outbound Foreign
• Corporate Taxation
• Open Economy
• Kế toán quốc tế
• Bài giảng Kế toán quốc tế
• Managerial accounting
• Financial position
• Financial statement analysis
• Capital budgeting
• A dynamic business environment
• Flexible budgeting
• Support activity costs
• Capital expenditure decisions