Preparation of benchmark analysis
- Using the Thomson Reuters database:
In a situation where there are no internally comparable data or they do not meet the necessary conditions, it is necessary to use external databases; The aim of benchmark analysis is to find sufficiently comparable uncontrolled transactions - transactions that have taken place between unrelated parties in the market and that are comparable in all relevant aspects to a given controlled transaction performed by a taxpayer.
- Forming a sample of comparable transactions:
When forming the sample, the emphasis is on independence, availability of financial data and other relevant search criteria; When searching for uncontrolled comparable transactions, we primarily focus on transactions realized in Serbia, if there is no a sufficient amount of comparable data, we expand the search to other markets, taking into account the comparability of business conditions in other markets.
- Quantitative analysis of the sample:
After forming a sample of potential companies, we perform a quantitative analysis to achieve better comparability, the analysis is performed in terms of the size of certain categories (assets, number of employees, revenues and more).
- Qualitative sample analysis:
Qualitative analysis of the sample implies a manual search of each company in the sample, ie additional analysis from the aspect of activity and related parties.
- Selection of indicators and calculation of interquartile range:
The choice of indicators is made according to the circumstances of each individual case, after which the calculation of the interquartile/ market price range is performed for the needs of transfer price analysis.
