INTERCOMPANY LOANS

As part of the ONESOURCE Transfer Pricing managed outsourcing services, our professionals are able to perform a two-step intercompany loan analysis using the borrowing entity's financial statements and publicly available interest rate data to create an arm's-length range of comparable interest rates.

The credit model uses financial ratios derived from the borrower's financial statements to accurately characterize the entity's credit risk with a bond rating. Then, we'll use historical risk-free interest rates and credit spreads sourced from the Markets division of Thomson Reuters to create a range of interest rates against which the intercompany interest rate will be benchmarked.

Interested in bringing transfer pricing in-house?
Learn about the Documenter version of ONESOURCE Transfer Pricing and the Benchmark tool