Another important aspect of comparability is measurement consistency. The net profit indicators must be measured consistently between the associated enterprise and the independent enterprise. In addition, there may be differences in the treatment across enterprises of operating expenses and non-operating expenses affecting the net profits such as depreciation and reserves or provisions that would need to be accounted for in order to achieve reliable comparability.
TPG2017 Chapter II paragraph 2.81
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By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Accounting standards, Comparability adjustments, Measured consistently, Profit Level Indicator (PLI), Transactional net margin method (TNMM), Transactional profit method, Transfer pricing methods
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