International Accounting
The comparable uncontrolled price (CUP) method is a transfer pricing technique used to determine the arm's length price for goods and services transferred between related entities. It involves comparing the price charged in a controlled transaction to the price charged in comparable uncontrolled transactions, ensuring that prices align with market conditions. This method is key in applying the arm's length principle, establishing fair pricing in intercompany transactions, and complying with transfer pricing regulations.
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