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transfer pricing
(redirected from Transfer price)

   Also found in: Financial, Acronyms, Wikipedia 0.02 sec.
transfer pricing
n
(Business / Commerce) the setting of a price for the transfer of raw materials, components, products, or services between the trading units of a large organization


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The universally accepted approach for setting a transfer price is referred to as the "arms-length standard.
The CRA made a bid to apply the comparable uncontrolled price (CUP) method and adjust the transfer price Glaxo had paid on ranitidine on the basis that Glaxo had paid a higher price to SwissCo than would have been reasonable if the companies were dealing at arm's length.
The transferor is viewed as if she charged the transferee a transfer price similar to that charged in the comparable transaction, adjusted to the level of difference between the related party and the comparable unrelated party transactions.
 
 
 
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