Accounting standard (ASC) 606 and transfer pricing - the devil is in the details

Resource Information

The work Accounting standard (ASC) 606 and transfer pricing - the devil is in the details represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Accounting standard (ASC) 606 and transfer pricing - the devil is in the details

Creator

• Sidher, S.K
• Nehoray, M
• Rose, B
• Das, J

Subject

• intercompany transaction
• accounting
• documentation requirements
• transfer pricing

Language

eng

Summary

Adoption of the new revenue recognition standard under ASC 606 could present companies with many unexpected tax technical and technology implications. With the new standard now beginning to take effect for public companies - and just a year away for others - it is important to understand the likely tax impact of adoption, including potential transfer pricing implications. Some companies began assessing the impact of ASC 606 in advance of the new standard's adoption date. However, it appears that others have not fully considered how these changes might affect the reporting of income from their intercompany transactions, as well as processes for testing intercompany transactions for transfer pricing compliance and documentation purposes, both from a US and a non-US perspective. Adoption of ASC 606 will have broad impact across industries and could potentially touch most intercompany transactions. Although ASC 606 may be disruptive, there are approaches for mitigating the impact of the new standard. This article offers an overview of ASC 606, including a comparison of key principles with current US transfer pricing rules. It discusses industry and tax implications and illustrates the potential impact on common types of intercompany transactions, including distribution, shared services, commission agent, license, cost sharing, and other transactions

Citation source

In: Tax management transfer pricing report. - Arlington. - Vol. 27 (2018), no. 20 ; 8 p

Geographic coverage

North America

Language note

English