Title Modeling a financial controlling system for managing transfer pricing operations
Authors Kalivoshko, Oleksii ; Kraievskyi, Volodymyr ; Hnatkivskyi, Bohdan ; Savchenko, Alla ; Kiktev, Nikolay ; Borkovska, Valentyna ; Kliopova, Irina ; Mudryk, Krzysztof ; Pysz, Pawel
DOI 10.3390/su17146650
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Is Part of Sustainability.. Basel : MDPI. 2025, vol. 17, iss. 14, art. no. 6650, p. 1-21.. ISSN 2071-1050
Keywords [eng] accounting ; controlled transactions ; finance ; financial controlling ; financial flow management ; financial management ; transfer pricing operations
Abstract [eng] The management of transfer pricing operations is considered from the perspective of modeling financial and accounting processes for various organizations, using agricultural enterprises as an example. It is demonstrated that the execution of transfer pricing operations between related parties—which may function as responsibility centers within an organizational holding structure—serves as a managerial lever influencing the financial income and expenses of individual business units. It is revealed that the developed model of managerial accounting for transfer pricing operations, grounded in tax compliance and the balancing of stakeholder interests, is based on two key aspects: first, to ensure the balanced development of the company’s business units, a list of key performance indicators (KPIs) is developed and integrated into a balanced scorecard (BSC), promoting the sustainable and stable operation and growth of the company; second, with access to this list of KPIs, the manager of each business unit can exert indirect influence over a segment of the final product’s value chain by selecting transfer prices that adhere to the arm’s length principle. The practical application of the proposed model is illustrated using previously formed economic operations from the research base.
Published Basel : MDPI
Type Journal article
Language English
Publication date 2025
CC license CC license description