Answer:
Transfer pricing are the prices established to record inter-company sale
Explanation:
The transfer price is the price at which one arm of a business sells to the other.For instance,the price at which one division of a company sells to another division,
The transfer price is very important in order that tax authority may see that the sale price charged is at arms length for all parties involved.
Answer:
Correct Option is B) Rochester Income Increase, Reedsburg Income No effect
Explanation:
As per IFRS,
When a company holds share of any company up to 20% then it is an associate, and in this case Rochester holds only 15% and thus will increase its net income with dividend received. (Cost method is followed)
When a company holds more than 20 % and less than 50% then the equity method is followed until and unless major significance is not exercised, generally it is exercised. In that case equity method is followed, and any income received is adjusted from cost of investment, and do not form part of income.
Answer:
yes that's so true,it helps a lot in business
