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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (10916)	12/15/2008 12:19:13 AM
From: John Pitera	Respond to of 33421

"Little Joe "....... Lou costello line as he plays craps with His straight man Bud Abbott, in their one of their first big movies circa 1941.... Buck Privates. Abbott is working the rounds by playing crap with Lou to get his Army Paycheck....except..... Lou seems to know a little too much about craps-g- I like to mention something that I don't think I've talked about here before and it's "Transfer Pricing".... I had never heard much about it after really studying companies and Global markets for years, but then when I was with this high end retained Executive Search firm, I found that these Transfer Pricing specialists ... 6 years out of school could be making years compensation packages north of 500,000 + bonuses. Especially for those doing this in The Greater China Region.... for one of the big 4 ....you talk to them and on Monday they are in Hong Kong, Tuesday.... in Beijing and by thursday they are in Sinagpore. The Problems of Transfer Pricing When you have facilities in more than one tax jurisdiction. By William K. Carter, David M. Maloney and M. H. Van Vranken July 1998 EXECUTIVE SUMMARY WHEN A COMPANY adds facilities in another stateor even worse, when it goes internationalit suddenly must contend with the complex process of transfer pricing. ................... A KEY ELEMENT of transfer pricing is the presence of a buyer-seller relationship between units of a single company. Although owners and managers may not think of one location as selling services or parts to another unit, the various taxing authoritieswhether state or nationalmay impose that view. Under such circumstances, a company has to determine the monetary value of the goods or services and treat that amount as sales revenue of the selling unit and as a cost of the buying unit. journalofaccountancy.com I'm going to amplify my thoughts on Transfer pricing and what this means to accounting and will also provide my answer to the obvious question: why are the big 4 accounting firms still private... when even Goldman Sachs and their money printing partnership could not avoid the Siren call of becoming a Public Company....yes showing the books, but also picking up a huge multiple expansion that private companies could not enjoy during the Big Bull market years. JP