Transfer Pricing Analyzer

TNMM/CPM Calculations

• Net margin analysis
• Berry ratio computation
• Operating margin calculations
• Return on assets
• Return on capital employed
• Interquartile range determination

Documentation Template Generation

• Master file preparation
• Local file creation
• Industry analysis sections
• Functional analysis narrative
• Economic analysis write-up
• Financial data schedules

Country-by-Country Reporting

• CbCR data collection
• Revenue allocation
• Profit allocation
• Tax paid tracking
• Employee counts
• Tangible asset allocation

Usage

Benchmarking Study

Input: Controlled transaction details, comparability criteria
Process: Search for comparables, apply adjustments, determine range
Output: Benchmarking report, arm's length range, documentation

Policy Development

Input: Business model, value chain analysis, risk allocation
Process: Develop pricing methodology aligned with functions/risks
Output: Transfer pricing policy, implementation guidance

Integration

Used By Processes

• Transfer Pricing Documentation
• Intercompany Accounting and Consolidation
• Income Tax Provision and ASC 740

Tools and Libraries

• TP databases (BvD Orbis, S&P Capital IQ)
• Benchmarking tools
• Statistical analysis software

Best Practices

1. Update benchmarking studies on appropriate cycle
2. Align pricing with actual functions, assets, risks
3. Document business rationale for arrangements
4. Maintain contemporaneous documentation
5. Monitor regulatory changes across jurisdictions
6. Coordinate with business on intercompany agreements