The Journal of Accounting and Management, Vol 6, No 1 (2016)

Abstract

The purpose of this research paper is fourfold: (a) discuss challenges the convergence from the U.S. GAAP to IFRS poses for multinational companies.  This section also surveys the advantages and disadvanrtages of such conversions; (b) investigate the transfer pricing of intangible assets with several important trends in the global market; (c) analyze and discuss the impact of the conversion on intangible assets' transfer pricing decision for both traditional transaction-oriented transfer pricing and the profit-based methods; and (d) offer recommendations to help alleviate problems associated with transfer pricing when switching to IFRS for the American multinational companies.  Transfer pricing systems of MNCs should be carefully reviewed and updated because financial statement information is used and comparability of that information between tested parties and companies to which they are compared is critical to achieving a reliable analysis to help MNVCs achieving their global strategic objectives.