The Influence of Accountancy Data on the Transfer Pricing Policy in Romania

Abstract

When adopting the transfer pricing policy, the tax affects not only the company but also the main indicators of performance, cash flow, and business strategy. Through the transfer pricing policy, which is actually a commercial policy of the company in relation to related parties, methods for determining prices in the future are established, and related party transactions, comply with the principle of market value. This article also presents practical elements on the harmonization and fiscal accounting principles in the field of related party transactions, so as to ensure better management of tax risk. Also, it seeks clarification of conceptual and practical aspects of transfer pricing, welcome for financial accounting professionals to know that the tax authorities have raised the number of controls in this area.