The role of digitalization of transfer pricing in the company’s management accounting system

Nina  Poyda-Nosyk; Valentyna  Borkovska; Robert  Bacho; Gabriella  Loskorikh; Veronika  Hanusych; Roman  Cherkes

doi:10.33094/ijaefa.v17i1.1096

Authors

Nina Poyda-Nosyk Department of Accounting and Auditing, Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education, Beregove, Transcarpathia, Ukraine. https://orcid.org/0000-0002-5378-8028
Valentyna Borkovska Department of Accounting, Taxation and E-Business Technologies, Higher Educational Institution “Podillia State University”, Kamianets-Podilskyi, Ukraine. https://orcid.org/0000-0002-2983-2973
Robert Bacho Department of Accounting and Auditing, Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education, Beregove, Transcarpathia, Ukraine. https://orcid.org/0000-0002-5957-7571
Gabriella Loskorikh Department of Accounting and Auditing, Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education, Beregove, Transcarpathia, Ukraine. https://orcid.org/0000-0002-5402-7220
Veronika Hanusych Department of Accounting and Auditing, Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education, Beregove, Transcarpathia, Ukraine. https://orcid.org/0000-0002-2983-2973
Roman Cherkes Department of Marketing and Logistics, Lviv Polytechnic National University, Lviv, Ukraine. https://orcid.org/0000-0003-4557-027X

DOI:

https://doi.org/10.33094/ijaefa.v17i1.1096

Keywords:

Business processes, Digital technologies, Management decisions, Profitability, Transfer pricing.

Abstract

The aim of the article was to study the theoretical and methodological aspects of the use of digital technologies in transfer pricing for the collection of the information background for management accounting. The study involved methods, such as the calculation of financial indicators, methods of finding separate data and their synthesis, system analysis, grouping, and ranking. These methods allowed for the calculation of the coefficient of innovation and technical business development in 27 countries of the European Union. The data obtained allowed us to determine the effectiveness of digitalization of transfer pricing by different methods, depending on the stage of the product life cycle, and to show the impact on the company’s financial performance. Return on Equity and Return on Assets are directly affected by transfer pricing in companies of selected sectors of the economy. In conclusion, 74% of the respondents noted positive changes in the financial result after the introduction of digital technologies in transfer pricing when making management decisions. The study will be useful for managers of different levels to convince them of the need for the digitalization of business processes. A promising area of further research is determining the impact of transfer prices on the overall state of tax payments of businesses.