Transfer pricing practices distort financial statements and tax revenues worldwide.
The article discusses how transfer pricing affects financial accounting. It emphasizes the importance of valuing transactions at market prices, using a comprehensive approach that considers financial, tax, and management accounting. The study highlights that transfer pricing methods can impact tax bases and distort financial statements. It suggests the need for changes in legal frameworks to enhance transparency and comparability. Additionally, it stresses the importance of improving professional competence and implementing controls to ensure compliance with regulations on transfer pricing.