Prepare the evidence behind transactions with related parties before year-end.
Transfer pricing scope
- List related parties and map the goods, services, loans and other dealings between them.
- Reconcile amounts in your ledger with contracts and invoices.
- Identify who performs key work, owns assets and bears the risks.
- Discuss whether benchmarking, a disclosure or local file documentation is relevant.
What to bring
Bring a group chart, intercompany agreements, a transaction summary and any previous policy or benchmarking work. A useful starting point is to pick the largest transaction and trace it from agreement to year-end ledger.
What a review should clarify
Agree which entities, periods and transactions are in scope. Ask what evidence is available, what assumptions need testing and how to handle any difference between agreements and day-to-day practice.