International accounting and transfer pricing

Watch the video and then summarise what you have learned.

Rapid advances in technology, transportation, and communication have given rise to a large number of Multinational Companies, MNS, which have the flexibility to place their enterprises and activities anywhere in the world. The fact is that a significant volume of global trade nowadays consists of international transfers of goods and services, capital, such as money, and intangibles, such as intellectual property, within an MNS group. Such transfers are called intra-group transactions.

There is evidence that intra-group trade is growing steadily, and arguably accounts for more than 30% of all international transactions. Furthermore, transactions involving intangibles and multi-tiered services constitute a rapidly growing proportion of an MNS’s commercial transactions and have greatly increased the complexities involved in analysing and understanding such transactions.