| Abstract [eng] |
The paper analyses managerial accounting methods effect on pricing decision in a company group. The analysis is focused on management fee which is the main tool for the parent company to distribute their expenses. Managerial services are hard to measure because they do not involve tangible and physically measurable results, leaving space for manipulation for the purpose of tax evasion. Thus, understanding the way management fee is distributed between the units of a company group and knowing alternative distribution methods is very important. The aim of the paper is to find what is the optimal way to allocate managerial expenses and how this allocation makes an impact on company group’s unit profit. In order to reach this aim, research literature was analysed and the factors influencing accounting data, pricing strategies and the development of pricing practices both internally and between the group companies have been aggregated. Further, the literature analysis findings were compared and the schemes evaluating the following relations were prepared: process and structure map of accounting methods influencing factors; internal pricing decisions towards the final customer and internal pricing decisions towards company units or departments – transfer pricing. This analysis helped to determine the conditions needed for efficient management fee calculation and distribution between the units of a company group. It was found out that the management fee needs to ensure that the management services charged are compliant with governmental guidelines and the arm length’s transaction principle and to ensure that the managerial services expenses of the management company are distributed adequately and efficiently to the other related parties of the groups. In order to test if this goal is reached in company groups, a model was constituted. Model was tested on a company group consisting of twenty-four related companies. The research results showed that the constituted model was determined to be a beneficial tool for evaluating how company’s profit can be improved through management fee distribution and that the company group unit’s result after the management fee redistribution is affected both by the base on which it is being redistributed and by the ratio between the actual profit and the management fee amount distributed. To sum up, it is beneficial and even crucial to calculate the appropriate management fee and distribute it correctly and efficiently. It is proved that the management fee distribution can scientifically change the profitability of the company group’s unit, thus leading to the wrong decision making toward the unit’s performance and even future success. |
