The impact of the pandemic on businesses has been varied between countries, industries and even between individual enterprises. Some market sectors have suffered the worst crisis since the Great Depression while others have proved to be surprisingly resilient and some businesses are thriving. This has created multiple challenges on how we approach price setting for intercompany transactions specifically when applying the Transaction Net Margin Method (TNMM). For instance, a time lag in availability of financial statements of comparable companies, which in stable economic environment does not present a significant challenge, could create huge issues in the case of an typical year such as 2020. Additionally, even when the data is available, the varied impact of COVID-19 could reduce the usefulness of the existing comparable set. This article suggests various approaches to comparability adjustments that can be considered when performing an economic analysis.
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