Hedging and Transfer Pricing

Hedging
Knowledge Center

 

Next Topic

Hedging > Forum

Sylvia, Student (MBA), Kenya
What is the relationship between hedging and transfer pricing? (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


  Jaap de Jonge, Editor, Netherlands
 

Hedging and Transfer Pricing

Transfer Pricing refers to actions relating to setting appropriate prices for transactions between related parties, typically among divisions in large firms when they are supplying each other with certain goods or services. In this definition, ‘appropriate’ is most commonly defined as ‘at arm’s length’.
Under the arm’s length principle, related tax payers must set transfer prices for any intercompany transaction in the same way as they would be set by unrelated firms in the marketplace, while keeping all other aspects of the relationship unchanged.
Transfer pricing must accommodate for differences between tax regimes of countries and valuta risks. These risks can be hedged (insured against).

 
More on Hedging
Summary
Forum
🔥Types and Applications of Derivative Products
Hedging and Transfer Pricing
Special Interest Group Leader

Are you an expert in Hedging? Sign up for free


Hedging
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 31-10-2020. All names ™ of their owners.