173. Competent authorities should identify the materiality of the transfer pricing in the context …

Competent authorities should identify the materiality of the transfer pricing in the context of trading book items by focusing on the transfer pricing arrangements that meet the following conditions:

• a. they involve at least one entity of the group that is established outside of the Union and for which the highest level of consolidation is outside the Union;
• b. they are based on a transaction profit method (TPM) – or any similar practice that would be economically equivalent – in accordance with which the profits and losses relating to positions owned by several entities are re-distributed across those entities on the basis of the marginal contribution ‘m’ of each entity towards key -metrics set out in the pricing arrangement.

1. Pregled

1.1 Sklici

1.2 Ugotovljene zahteve

1.3 Povezani standardi

2. Ugotovljene zahteve

3. Povezani standardi

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/