If you’re looking for free resources to help you practice the transfer pricing exercise, we have put together a list of websites that will be perfect for your needs. We also have a helpful tips section at the end of this article with some additional resources.
Please note: This page is a work in progress. We will be updating it with more resources and tips in the future.
1. A bad transfer pricing question
This one is not exactly a “resource,” but we have to start somewhere. Take this hypothetical example of an assignment question for the transfer pricing exercise course:
A company exports its exceptional hand-manufactured widgets to an arm’s length party at US$100 each. The arm’s length party then sells the widgets back to the US company at their cost of US$85 each. This results in a profit of $15 per widget, which is more than the company receives when it sells its widgets to a third-party retailer for $100. While the company is happy with this arrangement, the revenue department of their tax authority is livid with them. The government department claims that the company should be reporting a loss of US$15 per unit on their tax return and they should not be able to claim any tax relief at all.
How might your transfer pricing exercise department respond to this situation? What would you advise your client to do?
2. Corporate income taxes
This tip is a little bit different from the others on this list. If you need to brush up on your taxation of corporate income, then we recommend you take a look at the following resources:
3. International Financial Reporting Standards
IFRS are the accounting standards that are used by practically all companies in the world. At the moment, they only apply to large multinationals, but there is an international treaty which is currently being negotiated that would allow smaller companies to use IFRS as well.
4. Transfer Pricing Bloggers
There are actually several bloggers who specialize in writing about transfer pricing exercise. Some of them have learned from the professionals themselves and others have taught transfer pricing themselves at university. Here are some you might be interested in checking out:
5. Transfer Pricing Resources For Accountants
There are a number of resources for accountants who want to learn more about transfer pricing, including:
6. The Software
Transfer Pricing is a very complicated subject area, and so it is fairly common for software to be made specifically for the purpose of helping transfer pricing analysis. Here are some links to different transfer pricing programs you could use:
7. The Transfer Pricing Exercises
There are actually many transfer pricing exercise available online that you can take on yourself to practice your skills. It’s a lot more fun this way than doing it in an actual project! For example, here are a few:
8. The Ultimate Guide to Transfer Pricing
This book, written by Forbes Magazine columnist Jeff Van Gundy, is a great starting point if you are looking for further information on this topic.
Transfer Pricing Exercise Is Bound To Make An Impact In Your Business
You are a real estate investor. You bought a duplex, and you could rent out the top one to generate an income for your property. This is the perfect opportunity for you to make more money, since your involved in the investment with low risk. But how do you decide what price per square foot should be? And how much does it cost to actually move someone into your rental property? These are difficult questions that can have serious effects on your bottom line if not executed properly.
People have different ways of dealing with tricky issues in business. Some hand it over to their accountants for them to decide which price per square foot will work best for them, and some make a decision based on experience and good judgment as to what will be the best price per square foot. But whichever way you want to go about it, the problem of “how much” can still be difficult. Let’s take a look at how you come up with a solution that will let you maximize your sales figures.
You will have to first gather as much data as you can. If you already have a good relationship with your realtor, ask him for some advice on what the average price per square foot that you should use is. If this is your first time buying a duplex, then maybe a real estate agent can help you with the price per square foot. Be careful not to go overboard on the price per square foot that you should use. Find out the price of a similar duplex to yours in the neighborhood, and then decide.
So you have decided on what kind of sales price per square foot to use for your duplex and you are ready for your first tenant. They can’t move in yet, because you still need to get the unit clean and get it ready for the tenant. The tenant finally arrives, but now you have to take them on a tour of the property so that they can decide if they want the property or not.
The Lazy Way To Transfer Pricing Exercise.
Are you ever struggling to decide what prices to charge for your services?
No need for a complicated spreadsheet, or hours of research. This quick and easy pricing method will help you set the best possible rates, with minimum work!
In this article, I’ll be going into detail about The Lazy Way To transfer pricing exercise. Which is where a simple question can be used as the foundation for setting a base price.
By asking this one simple question. You will be able to set a price that is both fair to you, but also fair for your client.
Please note…. This method works best if you are selling your services or products through a service provider. Or if you are working under an umbrella of some kind. But is easily adaptable for freelancers and agencies alike.
If you work on your own, or don’t have a service provider, I’ll be providing extra tips to help you set up your pricing structure.