HOW TRANSFER PRICES WORK? - TRAINING HRDF CLAIMABLE

Transfer price is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. It is common for multi-entity corporations to be consolidated on a financial reporting basis; however, they may report each entity separately for tax purposes.

A transfer price arises for accounting purposes when related parties, such as divisions within a company or a company and its subsidiary, report their own profits. When these related parties are required to transact with each other, a transfer price is used to determine costs. Transfer prices generally do not differ much from the market price. If the price does differ, then one of the entities is at a disadvantage and would ultimately start buying from the market to get a better price.

Regulations on transfer pricing ensure the fairness and accuracy of transfer pricing among related entities. Regulations enforce an arm’s length transaction rule that states that companies must establish pricing based on similar transactions done between unrelated parties. It is closely monitored within a company’s financial reporting.

Transfer pricing requires strict documentation that is included in the footnotes to the financial statements for review by auditors, regulators, and investors. This documentation is closely scrutinized. If inappropriately documented, it can burden the company with added taxation or restatement fees. These prices are closely checked for accuracy to ensure that profits are booked appropriately within arm's length pricing methods and associated taxes are paid accordingly.

https://www.investopedia.com/terms/t/transferprice.asp

TRAINING SCHEDULE FOR 2020 AS BELOW:-

JAN 2020
FI190	Credit Management and Debt Recovery – Zero Debt Initiative (New)	6&7 Jan	Request
MG070	Tax Planning For Malaysian Company	6&7 Jan	Request
FI180	Financial Controls Under Current Economic	8&9 Jan	Request
FI182	Audit Report Writing for Internal Auditors	13&14 Jan	Request
FI056	Accounts Payable: From Accounting to Management	15&16 Jan	Request
FI163	Integrated Tax Planning	22&23 Jan	Request
FI071	Bookkeeping & Accounting Skills	29&30 Jan	Request
FI188	Budgeting & Planning For Organization Progress (New)	29&30 Jan	Request
FEB 2020
FI049	Accounts Receivable & Credit Policies Management	3&4 Feb	Request
FI201	Handling Full Set of Accounts – A Practical Approach (New)	3&4 Feb	Request
FI183	Managing P&L & SST Implementation	5&6 Feb	Request
FI142	Transfer Pricing	10&11 Feb	Request
FI184	Financial Literacy For Millenials (with Games)	17&18 Feb	Request
FI150	Finance For Non-Finance Professionals *SBL-Khas	19&20 Feb	Request
FI035	Credit Control and Debt Collection	24&25 Feb	Request
FI017	Accounting – A Fresh Start	26&27 Feb	Request
MAR 2020
FI155	Budgeting & Cashflow Projection For Non-Accounting Managers/Executives	2&3 Mar	Request
FI189	Cost Analysis – The Right Costing System (New)	2&3 Mar	Request
MG017	Fundamental of Costing & Budgeting	9&10 Mar	Request
FI179	Valuations Basics of Private Company	11&12 Mar	Request
FI033	Techniques on Collecting Hard Core Debts	16&17 Mar	Request
FI202	Costing Techniques & Pricing Decisions – The First Step (New)	16&17 Mar	Request
FI186	Management Accounting for Non-Finance	18&19 Mar	Request
MG069	Strategic Cash Flow Management	30&31 Mar	Request