International Treasury Back to Basics - The Effect of Transfer Pricing
- Topics:
- Working Capital
- Source:
- Treasury Alliance Group
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Overview: Transfer pricing is a fair, but arm’s length price assigned to the buying/selling of goods and services between related companies. The main Objectives of this article are to review Treasury’s interface with global business operations, describe operating and treasury transactions, introduce and define transfer pricing concepts. Treasury must understand the nature of all intercompany cash flows and interface with Tax in terms of correctly pricing these related company flows. Treasury transactions – including FX, advisory, banking, investing and financing are also subject to transfer pricing treatment, which needs to be evaluated in setting up a logical Treasury structure and the best approach to managing cash globally.
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Format: PDF | Size: 1,669KB | Date: Jan 2003 | Pages: 25
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