Lenzini Steel: The Impact of Transfer Pricing and Taxes on International Operations

2015 ◽  
Vol 31 (4) ◽  
pp. 369-387
Author(s):  
Bradrick M. Cripe ◽  
Anthony Harmon ◽  
Timothy D. West
Keyword(s):  
Problem Solving ◽  
Transfer Pricing ◽  
Integrated Approach ◽  
Learning Objectives ◽  
Parent Company ◽  
Financial Accounting ◽  
Bad News ◽  
Pricing Decisions ◽  
The Cost ◽  
The Impact

ABSTRACT Lenzini Steel is an inter-disciplinary case that uses four inter-company transactions (ICTs) to demonstrate how the cost/managerial concept of transfer pricing can impact financial and/or tax disclosures on an international stage. The goal is to strengthen students' managerial/cost accounting, tax, and/or financial accounting skills by asking them to examine a transfer pricing case from the different technical perspectives. The case tells the story of an Italian parent company with significant cash flow inflexibility. It needs an infusion of cash from its U.S.-based subsidiary to remain viable, while limiting tax exposure. Students may face any or all of these issues: (1) How can the parent company best obtain the cash it so urgently needs? (2) What are the tax consequences of management's decisions to obtain this cash? (3) What are the financial accounting implications of these decisions? (4) How will they communicate potentially bad news? When using the case, instructors can use an integrated approach (consider cost/managerial, financial, and tax accounting issues), or focus on the learning objectives that most align with their course. The case has been successfully used with M.Acc., M.B.A., and E.M.B.A. students to demonstrate the implications of management's transfer pricing decisions, the impact of judgment in critical thinking, and how problem solving represents leadership.

TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ

2014 ◽  
Vol 1 (2) ◽  
pp. 187
Author(s):  
Serdar KUZU
Keyword(s):  
Business Performance ◽  
Transfer Pricing ◽  
Tax Law ◽  
Economic Activities ◽  
Tax System ◽  
Goods And Services ◽  
Tax Legislation ◽  
International Transactions ◽  
The Cost ◽  
The Impact

The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.

Managers' Motives to Withhold Segment Disclosures and the Effect of SFAS No. 131 on Analysts' Information Environment

2005 ◽  
Vol 80 (3) ◽  
pp. 751-772 ◽  
Author(s):  
Christine A. Botosan ◽  
Mary Stanford
Keyword(s):  
Poor Performance ◽  
Information Environment ◽  
Financial Accounting ◽  
Weak Evidence ◽  
Public Data ◽  
Segment Disclosure ◽  
Segment Disclosures ◽  
The Cost ◽  
The Impact ◽  
Segment Information

Using retroactive disclosures required by Statement of Financial Accounting Standards (SFAS) No. 131, we examine managers' incentives for withholding segment information under SFAS No. 14 and the impact of SFAS No. 131 on analysts' information environment for a sample of firms that previously reported as single-segment firms and initiated segment disclosure with SFAS No. 131. We examine this set of firms because they likely had the strongest incentives to withhold segment information and analysts potentially had the most to gain when these firms were forced to begin providing segment disclosures under SFAS No. 131. We find that these firms used the latitude in SFAS No. 14 to hide profitable segments operating in less competitive industries than their primary operations. However, we find no evidence to suggest that these firms used the latitude in SFAS No. 14 to mask poor performance. In contrast, our results suggest that by withholding segment information, these firms allowed themselves to appear as if they were underperforming their competition when this was not the case. Thus, their decision to withhold segment disclosures under SFAS No. 14 appears to be motivated by a desire to protect profits in less competitive industries. In terms of the impact of SFAS No. 131 on analysts' information environment, our evidence suggests that SFAS No. 131 increased analysts' reliance on public data, but we provide weak evidence to suggest that this shift may have come at the cost of a marginal increase in overall uncertainty and squared error in the mean forecast.

The South America Tomato Leafminer, Tuta absoluta (Lepidoptera: Gelechiidae), Spreads Its Wings in Eastern Africa: Distribution and Socioeconomic Impacts

2019 ◽  
Vol 112 (6) ◽  
pp. 2797-2807 ◽  
Author(s):  
Pascal Osa Aigbedion-Atalor ◽  
Martin P Hill ◽  
Myron P Zalucki ◽  
Francis Obala ◽  
Gamal E Idriss ◽  
...  
Keyword(s):  
Control Strategies ◽  
Sustainable Livelihoods ◽  
Integrated Approach ◽  
Control Measures ◽  
Tuta Absoluta ◽  
Eastern Africa ◽  
Socioeconomic Impacts ◽  
Tomato Production ◽  
The Cost ◽  
The Impact

Abstract Following the arrival of Tuta absoluta Meyrick in the eastern African subregion in 2012, several studies have shown numerous ecological aspects of its invasion. We investigated the impact of T. absoluta on people’s livelihoods across four counties of Kenya. Here, 200 farmers in the country were interviewed in person using semistructured questionnaires. In addition to livelihood surveys, T. absoluta distribution was mapped between 2016 and 2018 to determine its current distribution across four countries (Kenya, Sudan, Tanzania, and Uganda) in the subregion. Albeit a recent invader, T. absoluta is abundant and distributed throughout the subregion and is viewed as the worst invasive alien species of agriculturally sustainable livelihoods by tomato farmers. The arrival of T. absoluta in the subregion has resulted in livelihood losses and increased both the cost of tomato production and frequency of pesticide application. We recommend the implementation of biological control along, with other control measures in an integrated approach, against T. absoluta in the subregion, where its impact on sustainable livelihoods is serious and long-term control strategies are required to curb its detrimental effects.

Role of computers in the design of energy-responsive buildings

1989 ◽  
Vol 16 (1) ◽  
pp. 55-61
Author(s):  
Radu Zmeureanu ◽  
Paul Fazio
Keyword(s):  
Structural Engineering ◽  
Building Design ◽  
Integrated Approach ◽  
Design Stage ◽  
Interactive Software ◽  
Cost Of Energy ◽  
Hollow Core Slab ◽  
The Cost ◽  
The Impact

Closer collaboration of the traditional disciplines of architecture, structural engineering, and mechanical engineering is required at the design stage to better deal with the complexity of modern buildings, and to maintain the cost of energy low while providing a suitable indoor environment during the life of the building.The availability of personal computers and the development of interactive software provide more opportunities for an integrated approach to building design. This approach is useful in determining the impact of one subsystem on the performance of another subsystem and on the overall performance of the building. An example of such an integrated approach is presented in this paper, which determines the impact of a structural system (hollow core slab) and its mass on the energy consumption of the building. Key words: building design, computers, energy.

scholarly journals Effects of Integration on the Cost Reduction in Distribution Network Design for Perishable Products

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Z. Firoozi ◽  
N. Ismail ◽  
S. Ariafar ◽  
S. H. Tang ◽  
M. K. M. A. Ariffin ◽  
...  
Keyword(s):  
Network Design ◽  
Integrated Approach ◽  
Mixed Integer ◽  
Location Decisions ◽  
Perishable Products ◽  
Integrated Method ◽  
The Cost ◽  
The Impact ◽  
Decoupled Method

Perishable products, which include medical and pharmaceutical items as well as food products, are quite common in commerce and industries. Developing efficient network designs for storage and distribution of perishable products plays a prominent role in the cost and quality of these products. This paper aims to investigate and analyze the impact of applying an integrated approach for network design of perishable products. For this purpose, the problem has been formulated as a mixed integer nonlinear mathematical model that integrates inventory control and facility location decisions. To solve the integrated model, a memetic algorithm (MA) is developed in this study. For verification of the proposed algorithm, its results are compared with the results of an adapted Lagrangian relaxation heuristic algorithm from the literature. Moreover, sensitivity analysis of the main parameters of the model is conducted to compare the results of the integrated approach with a decoupled method. The results show that as the products become more perishable, application of an integrated method becomes more reasonable in comparison with the decoupled one.

Pricing in Market Uncertainties

2013 ◽  
pp. 207-229
Keyword(s):  
Customer Value ◽  
Integrated Approach ◽  
Competitive Environment ◽  
Pricing Strategies ◽  
Marketing Environment ◽  
Pricing Decisions ◽  
Marketing Planning ◽  
Demand Shifts ◽  
Price Analysis ◽  
The Impact

The marketing environment for a competitive environment is a combination of factors that are used for pursuing marketing objectives in the identified markets for achieving targets. These factors have to be strategically mixed in the marketing planning for offering quality services and optimizing customer value. It is an integrated approach for promoting the services with a view to expand the area under services market. This chapter discusses the pricing strategies that can support the firms during marketing uncertainties. The author argues that many pricing decisions are driven by judgmental rather than data-rich uncertainties—the rate of demand shifts, the impact of substitute prices, the consumer conflicts on prices offered, or the extent of price war. This chapter also discusses the strategies for niche pricing. It is also illustrated in the chapter that there are three levels of price analysis in reference to competition—a price system, price at an individual competitor’s firm, and industry rival’s price.

scholarly journals The Role of Prudence in Moderating the Effect of Bonus Mechanism, Intangible Assets, and Inventory Intensity Ratio on Transfer Pricing

2020 ◽  
Vol 3 (2) ◽  
pp. 154-168
Author(s):  
Uswatun Khasanah ◽  
Trisni Suryarini
Keyword(s):  
Intensity Ratio ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Sampling Technique ◽  
Intangible Asset ◽  
Manufacturing Companies ◽  
Construction Companies ◽  
Pricing Decisions ◽  
The Impact

This study aims to examine prudence's role in moderating the effect of bonus mechanism, intangible asset, and inventory intensity ratio on transfer pricing decisions. This research population is all property, real estate & construction companies, and manufacturing companies listed on the Indonesia Stock Exchange in 2018. The sampling technique uses a purposive sampling method to obtain 109 units of analysis. This study uses moderated regression analysis (MRA), which is processed using IBM SPSS 21. This study proves that the bonus mechanism does not affect, while intangible assets and inventory intensity ratio significantly affect transfer pricing decisions. Prudence is proven to moderate the intangible assets' influence but does not moderate the impact of the bonus mechanism and inventory intensity ratio on transfer pricing decisions. This study concludes that the bonus mechanism does not affect the transfer pricing decision. Prudence is proven to moderate the effect of intangible assets but does not moderate the impact of the bonus mechanism and inventory intensity ratio on transfer pricing decisions.

TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ THE IMPACT OF TRANSFER PRICING PRACTICE ON BUSINESS PERFORMANCE AND THE EVALUATION FROM THE TAX POINT

2014 ◽  
Vol 1 (2) ◽  
pp. 187
Author(s):  
Serdar KUZU
Keyword(s):  
Business Performance ◽  
Transfer Pricing ◽  
Tax Law ◽  
Economic Activities ◽  
Tax System ◽  
Goods And Services ◽  
Tax Legislation ◽  
International Transactions ◽  
The Cost ◽  
The Impact

The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.

scholarly journals An Integrated Approach to Energy Education in Engineering

2020 ◽  
Vol 12 (21) ◽  
pp. 9145
Author(s):  
Gordon D. Hoople ◽  
Diana A. Chen ◽  
Susan M. Lord ◽  
Laura A. Gelles ◽  
Felicity Bilow ◽  
...  
Keyword(s):  
Engineering Students ◽  
Integrated Approach ◽  
Learning Objectives ◽  
Social Aspects ◽  
Engineering Practice ◽  
Pedagogical Approach ◽  
Energy Education ◽  
Second Year ◽  
The Impact ◽  
First Time

What do engineering students in 2020 need to know about energy to be successful in the workplace and contribute to addressing society’s issues related to energy? Beginning with this question, we have designed a new course for second-year engineering students. Drawing on the interdisciplinary backgrounds of our diverse team of engineering instructors, we aimed to provide an introduction to energy for all engineering students that challenged the dominant discourse in engineering by valuing students’ lived experiences and bringing in examples situated in different cultural contexts. An Integrated Approach to Energy was offered for the first time in Spring 2020 for 18 students. In this paper, we describe the design of the course including learning objectives, content, and pedagogical approach. We assessed students’ learning using exams and the impact of the overall course using interviews. Students demonstrated achievement of the learning objectives in technical areas. In addition, interviews revealed that they learned about environmental, economic, and social aspects of engineering practice. We intend for this course to serve as a model of engineering as a sociotechnical endeavor by challenging students with scenarios that are technically demanding and require critical thinking about contextual implications.

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

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