№ 12/2021

Fìnansi Ukr. 2021 (12): 99–113https://doi.org/10.33763/finukr2021.12.099

SCIENTIFIC SUPPORT OF INSTITUTIONAL REFORMS

SVYRYDENKO Maryna ¹, KUCHERIAVA Maria ²

¹Тне Secretariat of the Cabinet of Ministers of Ukraine
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-2948-1234

Institutional provision of preparation of transfer pricing documentation: international experience and directions for development in Ukraine

The article considers the essence of amortization in accordance with national and international standards of accounting and financial reporting, analyzes scientists’ approaches. The process of amortization in the context of economic life cycle of the intangible asset is studied. The purpose and features of the impairment process of intangible assets are outlined. Signs of impairment of the intangible assets for each of the common classes are identified. The inexpediency of applying amortization to non-standard accounting intangible assets, which are not the property of the enterprise in the classical sense, is substantiated, instead it is proposed to test them for impairment. The author's definition of the concept of “amortization of the intangible assets” is given. Four levels of legal regulation of amortization of the intangible assets are considered. The comparative aspect of the requirements of national and international standards for amortization is studied. The peculiarities of the amortization policy of 30 domestic enterprises are generalized and the negative tendency of the indicators of the state of intangible assets is revealed. Areas of management of fully amortized intangible assets are proposed, which include preventive measures and the algorithm for selecting measures ex post facto. The essential characteristics of the intangible assets that should be taken into account when formulating amortization policy are identified. The advantages and disadvantages of different methods of amortization of intangible assets are analyzed and the choice of amortization parameters for different classes of the intangible assets is recommended. The issue of amortization of the rights of permanent use of land as part of intangible assets is studied. The basics for estimating the liquidation value of the intangible assets are determined. The impact of accounting estimates for intangible assets on taxation is summarized.

Keywords:intangible assets, amortization, impairment, amortization policy, amortization method, break-up value, useful life.

JEL: H29

Svyrydenko M. . Institutional provision of preparation of transfer pricing documentation: international experience and directions for development in Ukraine / M. Svyrydenko, M. Kucheriava // Фінанси України. - 2021. - № 12. - C. 99-113.

Article original in Ukrainian (pp. 99 - 113)

Download

Downloads :91

1. Sari, D. K. (2020, April 3). Transfer Pricing Aggressiveness and Corporate Governance: Indonesia’s Evidence. Proceedings of the 3rd International Conference on Vocational Higher Education (ICVHE 2018). doi.org/10.2991/assehr.k.200331.123.
2. Sebele-Mpofu, F., Mashiri, E., & Schwartz, S. Ch. (2021). An exposition of transfer pricing motives, strategies and their implementation in tax avoidance by MNEs in developing countries. Cogent Business & Management, 8 (1), 1–25. 10.1080/23311975.2021.1944007.
3. Kramarova, K. (2021). Transfer Pricing and Controlled Transactions in Connection with Earnings Management and Tax Avoidance. Globalization and its Socio-Economic Consequences (The 20th International Scientific Conference), 92, 02931. doi.org/10.1051/shsconf/20219202031.
4. Osho, A., & Ilori, F. (2020). Influence of Transaction Transfer Pricing Policies on Corporate Organizations Tax in Nigeria. Research Journal of Finance and Accounting, 11 (6), 58–66. doi.org/10.1080/23311975.2021.1944007
5. Ahn, E. (2020, August 6). Australia evaluates impact of COVID-19 on transfer pricing. International Tax Review. Retrieved from www.internationaltaxreview.com/article/b1mtm82r4cnm7j/australia-evaluates-impact-of-covid-19-on-transfer-pricing.
6. White, J. (2021, February 11). COVID-19 turns TP into key growth area for tax insurance. International Tax Review. Retrieved from www.internationaltaxreview.com/article/b1qj3njd952bd0/covid-19-turns-tp-into-key-growth-area-for-tax-insurance.
7. Mwampuwa, P. (2020). The analysis on the efficiency of tax anti-avoidance provisions in the income tax Act in Tanzania mainland: a case study of Mbeya city council. Retrieved from hdl.handle.net/11192/4108.
8. Oliynyk, Ya., & Kucheriava, M. (2021). Assessment of Ukraine’s readiness for international automatic exchange of information for tax purposes. Finance of Ukraine, 2, 85–97 [in Ukrainian]. doi.org/10.33763/finukr2021.02.085
9. Oliynyk, Ya., & Chyzhykova, O. (2019). Institutional implementation of transfer pricing: global context and prospects for Ukraine. Finance of Ukraine, 2, 99–110 [in Ukrainian]. doi.org/10.33763/finukr2019.02.099
10. Chukhraieva, N. (2021). International experience and common errors in protecting of confidentiality, protection and use of CbC reporting information. RFI Scientific Papers, 2, 146–159 [in Ukrainian]. doi.org/10.33763/npndfi2021.02.146
11. Kryshtopa, I., & Nikolenko, L. (2021). Country-by-country reporting: international experience of implementation. Finance of Ukraine, 6, 29–39 [in Ukrainian]. doi.org/10.33763/finukr2021.06.029
12. OECD/G20 Base Erosion and Profit Shifting Projects. (2015). Transfer Pricing Documentation and Country-by-Country Reporting. Action 13 (2015 Final Report). doi.org/10.1787/9789264241480-en.
13. International Monetary Fund, Organization for Economic Co-operation and Development, United Nations, & World Bank Group. (2019). Platform for collaboration on tax (Practical toolkit to support the successful implementation by developing countries of effective transfer pricing documentation requirements). Retrieved from www.tax-platform.org/sites/pct/files/publications/Practical%20Toolkit%20to%20Support%20the%20Successful%20Implementation%20by%20Developing%20Countries%20of%20Effective%20Transfer%20Pricing%20Documentation%20Requirements%20-%20vF.pdf.
14. United Nations. (2013). Practical Manual on Transfer Pricing for Developing Countries. New York. Retrieved from www.un.org/development/desa/financing/sites/www.un.org.development.desa.financing/files/2020-03/UN_Manual_TransferPricing.pdf.
15. United Nations. (2021). Practical Manual on Transfer Pricing for Developing. New York. Retrieved from www.un.org/development/desa/financing/sites/www.un.org.development.desa.financing/files/2021-04/TP_2021_final_web%20%281%29.pdf
16. OECD. (2020). OECD/G20 Inclusive Framework on BEPS: Progress report (July 2019 – July 2020). Retrieved from www.oecd.org/tax/beps/oecd-g20-inclusive-framework-on-beps-progress-report-july-2019-july-2020.pdf
17. Deloitte. (2020). Trends in Transfer Pricing. Global Research Bulletin. Retrieved from www2.deloitte.com/gu/en/pages/tax/articles/global-transfer-pricing-global-research-bulletin.html.
18. Jaffer, S. (2019, August). Key challenges faced by taxpayers on preparation of transfer pricing documentation. Nexia International. Retrieved from nexia.com/insights/-key-challenges-faced-by-taxpayers-on-preparation-of-transfer-pricing-documentation/.
19. European Commission. (2016). Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52016PC0198.
20. EU Council. (2006, June 27). Resolution of the Council and of the representatives of the governments of the Member States, meeting within the Council, on a code of conduct on transfer pricing documentation for associated enterprises in the European Union (EU TPD). Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A42006X0728%2801%29.
21. Verkhovna Rada of Ukraine. (2010). Tax Code of Ukraine (Act No. 2755-VI, December 2). Retrieved from zakon.rada.gov.ua/laws/show/2755-17 [in Ukrainian].