Aibidia’s Post

Great insights by Maria Helander and Reuben Sagar on why transfer pricing is no longer just a back-office compliance task - it’s now a strategic priority on the CFO agenda.

Is transfer pricing still just a compliance headache in your business? For many CFOs, that perception is changing. What used to be treated as a cost sink is now being seen as a lever for strategy, resilience, and growth. Here’s what stood out: - Only 14% of companies are using structured data for transfer pricing, while 92% still lean heavily on external advisors. - Audit defense is shifting from reactive to proactive, with leading firms aiming to be “always audit ready” by capturing decisions and data in real time. - Technology is becoming central. Platforms and AI tools can automate repetitive work and surface insights, but only when the underlying data is in good shape. - Hybrid models are emerging, where companies outsource parts of the work but retain visibility and control through in-house oversight. - With global tax rules like Pillar Two and BEPS adding complexity, proactive management of transfer pricing is moving up the CFO agenda. Transfer pricing can no longer sit in the shadows. Done right, it is not just about staying compliant. It is about equipping finance leaders with transparency, agility, and control. 👉 Read the full analysis from Reuben Sagar & Maria Helander, Aibidia on The CFO: https://lnkd.in/ejJxRCCU

🌍 Cross-Border Compliance: The Hidden Challenge of Global Businesses For companies expanding across borders, growth isn’t just about new markets and opportunities, it also comes with complex compliance headaches. 📌 Multiple entities under one group 📌 Multi-currency transactions fluctuating daily 📌 Ever-changing local tax & reporting regulations 📌 The need for consolidated, real-time financial visibility What works for a single-entity business quickly breaks down when operations span multiple countries. Spreadsheets pile up, reconciliations slow down, and compliance risks skyrocket. This is where accounting firms and finance leaders must rethink their tech stack: ✅ Multi-entity consolidation tools to bring everything together ✅ Automated FX handling to avoid costly errors ✅ Centralized compliance frameworks that adapt to local laws Global growth is exciting but without the right systems, compliance can become the roadblock instead of the enabler. 👉 How is your firm or finance team managing cross-border compliance today? #Accounting #Finance #Compliance #GlobalBusiness #CrossBorder #growingpractice

💡 The Hidden Power of Financial Records Clean-Up When people hear “financial records clean-up,” they often imagine a back-office task—tedious reconciliations, correcting old entries, or closing suspense accounts. But here’s the truth: clean-up work is one of the most strategic contributions a finance team can make to an organization. Why? Because messy books don’t just create compliance risks—they erode trust. And in finance, trust is everything. 🔹What does clean-up actually involve? >Reconciling bank statements, supplier/customer balances, and intercompany accounts. >Correcting misclassifications, posting missing entries, and eliminating duplicates. >Aligning records with IFRS/GAAP standards and tax obligations. >Standardizing the chart of accounts, clearing suspense balances, and introducing controls. 🔹What makes it strategic? Financial clean up is strategic because every management decision depends on accurate financial data. When financial records are messy: 1. Cash flow forecasts mislead. 2. Profitability analysis is skewed. 3. Audits become nightmares. 4. Regulators raise red flags. But when records are clean, leadership can act with confidence—whether it’s approving an expansion project, raising capital, or simply keeping operations stable. 🔹The real outcome of clean-up It’s not just “tidier books.” It’s: ✅ Reliable numbers that investors, auditors, and boards can trust. ✅ Faster, smoother financial closes. ✅ A foundation for growth, because systems and controls prevent future messes. 💭 I’ve seen how disorganized records can stall decision-making, delay funding, and drain management’s confidence. But I’ve also seen how a proper clean-up restores clarity, strengthens credibility, and unlocks growth opportunities. In my view, financial records clean-up is less about fixing the past—and more about building credibility for the future. At the end of the day, finance isn’t just about reporting history—it’s about creating clarity that powers tomorrow’s strategy.

When this client came to us, their books were more of a burden than a backbone. ❌ Payments delayed. ❌ Cash flow unpredictable. ❌ Reports that arrived too late to act on. They felt like finance was holding them back, not helping them grow. Here’s what changed: 1️⃣ We started with a cleanup - untangling months of mismatched transactions. 2️⃣ Built them a clear reporting structure tied directly to their business goals. 3️⃣ Introduced automation - approvals, reconciliations, and reporting that actually ran themselves. The result? ✅ Month-end close went from 3 weeks → 5 days. ✅ Their #leadership team could finally trust the numbers. ✅ And they had the clarity to greenlight expansion into new markets. 📊 That’s what growth looks like when finance works for you, not against you. 👉 What’s your version of a “before/after” story in business? FCA. Jimmy Vadera FCPA. Dhara Vadera CA Sumegha Mehta Borar CA Rupali Parikh Aamir Shaikh Siabh O'Mara Raven Accounting Services Defined Business Matters #bookkeeping #outsourceaccounting #businessgrowth #smallbusinessaustralia #australiabusiness

When revenue recognition is questioned, boards and audit committees should pay close attention. Germany’s financial regulator, BaFin, has launched an audit of Gerresheimer’s 2024 accounts over possible premature revenue recognition, sending shares sharply lower. (Reuters) For public company directors, the development underscores a critical point: • Revenue recognition is one of the most common sources of restatements and enforcement actions. • Audit committees must provide active oversight of revenue policies, ensuring consistency, transparency, and compliance with accounting standards. • Clear controls and monitoring can help identify issues early and protect against regulatory scrutiny or reputational damage. The takeaway: revenue recognition isn’t just an accounting detail—it’s a core governance and audit committee responsibility. https://lnkd.in/eQ42rhrF

Understanding Related Party Transactions (RPTs): Risks, Tests & Disclosures In financial reporting, few areas raise as much scrutiny as Related Party Transactions (RPTs). What are Related Party Transactions? A related party transaction occurs when a company enters into arrangements with entities or individuals that have close connections — such as subsidiaries, associates, key management, or shareholders with significant influence. Standards to Note IAS 24 – Related Party Disclosures defines and governs disclosure of related parties. IAS 27/IFRS 10 address control and consolidation when group relationships exist. IFRS 11 applies when joint arrangements are involved. How to Identify Related Parties in line with the standard: Common ownership or parent-subsidiary relationships Key management personnel and their close family members Transactions with entities under significant influence (e.g., associates, joint ventures) Examples of RPTs: Intercompany sales or transfers of goods Loans or guarantees between group entities Management fees or royalty arrangements Asset transfers or shared services 🚩 Risks of Related Party Transactions: Non-arm’s length pricing → manipulation of profits or costs Hidden liabilities or off-book arrangements Incomplete disclosure → misleading financial statements Test of RPTs: Obtain related party list from management and governance. Review board minutes, shareholder registers, and contracts to detect undisclosed parties. Perform journal entry reviews for unusual transactions. Match intercompany balances across group entities for consistency. Test pricing against market/arm’s length benchmarks. Disclosure Requirements (IAS 24): Nature of the relationship Types of transactions Amounts involved (transactions, balances, commitments) Outstanding balances (terms, guarantees, provisions for doubtful debts) Example: Imagine a consumer goods company selling raw materials to its distribution subsidiary at a discounted rate. ✔️ Accounting Treatment: Revenue should be recognized in line with IFRS 15, but pricing and terms must reflect that it’s not an arm’s length transaction. ✔️ Disclosure: Under IAS 24, the company must disclose the relationship, the nature of the transaction, the amounts, outstanding balances, and pricing policy. Key Takeaway: Related party transactions are not inherently wrong — but transparency, fair presentation, and robust audit procedures are critical to maintaining trust. 👉 How does your organization ensure RPTs are properly captured and disclosed?

The FCA is cracking down on corporate finance firms to improve governance, culture and procedures around inside information and market soundings. Market Watch 83 makes it clear: firms need stronger systems and oversight. Matt Farrell covers the main takeaways and next steps 👇 #CorporateFinance #MarketWatch #RegulatoryCompliance #FCA

The FCA is cracking down on corporate finance firms to improve governance, culture and procedures around inside information and market soundings. Market Watch 83 makes it clear: firms need stronger systems and oversight. Matt Farrell covers the main takeaways and next steps. #CorporateFinance #MarketWatch #RegulatoryCompliance #FCA

Why Transfer Pricing Is Not Just a Compliance Exercise? 👉 Transfer Pricing is not just a compliance requirement. It’s a business story told through numbers. When we treat TP merely as a “document to file,” we miss the larger picture - the story of how and where value is actually created within a multinational group. 🔍 Here’s what TP truly reflects - when done right: 1️⃣ It’s a mirror of business reality. A good TP report isn’t just about margins or comparables - it reflects the functional essence of a company. It answers the question: Who actually drives the value? Is it the IP owner, the distributor, or the contract manufacturer? 2️⃣ It’s a bridge between teams. Transfer Pricing connects finance, operations, and tax like no other function. When TP professionals talk to business units, they uncover how transactions are structured, risks are shared, and costs are justified. That’s not compliance - that’s cross-functional clarity. 3️⃣ It’s a shield for future assessments. Yes, TP reports serve as documentation for audits - but if built with depth and transparency, they become your strongest defence in litigation or scrutiny. 4️⃣ It’s a tool for internal decision-making. Group CFOs and finance leaders use TP insights to decide cost-sharing arrangements, intercompany markups, and even operational strategies. 🌐 The shift in mindset Over time, global tax administrations are also recognising that Transfer Pricing is about substance, not form. They now look beyond financial ratios — they look for commercial logic. That’s where a TP professional adds real value: translating business intent into arm’s-length evidence. So maybe this TP season, we should pause and ask: ❓ Are we preparing reports just to comply? or ✅ Are we documenting how our organization truly creates and captures value? Because at its core, Transfer Pricing is not just a report - it’s the business narrative behind every transaction. #TransferPricing #TPSeason #InternationalTax #TaxStrategy #FinanceCommunity #TPDocumentation #TPInsights