HOW TRANSFER PRICES WORK? - TRAINING HRDF CLAIMABLE


What Is a Transfer Price?
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 can also be known as a transfer cost.

How Transfer Prices Work
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.


TRAINING SCHEDULE FOR 2020 AS BELOW:-

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


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