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Modeling a Financial Controlling System for Managing Transfer Pricing Operations

Author

Listed:
  • Oleksii Kalivoshko

    (Department of Financial, Credit and Tax Policy, National Science Center, Institute of Agrarian Economics, Heroyiv Oborony Str., 10, 03127 Kyiv, Ukraine)

  • Volodymyr Kraievskyi

    (Faculty of Taxation, Accounting and Audit, State Tax University, University Str., 31, 08200 Irpin, Ukraine)

  • Bohdan Hnatkivskyi

    (Department of Finance, Money Circulation and Credit, Ivan Franko National University of Lviv, Svobody Ave., 18, 79008 Lviv, Ukraine)

  • Alla Savchenko

    (Faculty of Taxation, Accounting and Audit, State Tax University, University Str., 31, 08200 Irpin, Ukraine)

  • Nikolay Kiktev

    (Department of Automation and Robotic Systems, National University of Life and Environmental Sciences of Ukraine, Heroiv Oborony Str., 15, 03041 Kyiv, Ukraine)

  • Valentyna Borkovska

    (Educational and Scientific Institute of Business and Finance, Department of Accounting, Taxation and E-Business Technologies, Higher Educational Institution, Podillia State University, Shevchenko Str., 13, 32300 Kamianets-Podilskyi, Ukraine)

  • Irina Kliopova

    (Institute of Environmental Engineering, Kaunas University of Technology, Gedimino Str., 50, 44239 Kaunas, Lithuania)

  • Krzysztof Mudryk

    (Ukrainian University in Europe—Foundation, Balicka 116, 30-149 Krakow, Poland
    Faculty of Production and Power Engineering, University of Agriculture in Krakow, Balicka 116B, 30-149 Krakow, Poland)

  • Pawel Pysz

    (Faculty of Production and Power Engineering, University of Agriculture in Krakow, Balicka 116B, 30-149 Krakow, Poland)

Abstract

The management of transfer pricing operations is considered from the perspective of modeling financial and accounting processes for various organizations, using agricultural enterprises as an example. It is demonstrated that the execution of transfer pricing operations between related parties—which may function as responsibility centers within an organizational holding structure—serves as a managerial lever influencing the financial income and expenses of individual business units. It is revealed that the developed model of managerial accounting for transfer pricing operations, grounded in tax compliance and the balancing of stakeholder interests, is based on two key aspects: first, to ensure the balanced development of the company’s business units, a list of key performance indicators (KPIs) is developed and integrated into a balanced scorecard (BSC), promoting the sustainable and stable operation and growth of the company; second, with access to this list of KPIs, the manager of each business unit can exert indirect influence over a segment of the final product’s value chain by selecting transfer prices that adhere to the arm’s length principle. The practical application of the proposed model is illustrated using previously formed economic operations from the research base.

Suggested Citation

  • Oleksii Kalivoshko & Volodymyr Kraievskyi & Bohdan Hnatkivskyi & Alla Savchenko & Nikolay Kiktev & Valentyna Borkovska & Irina Kliopova & Krzysztof Mudryk & Pawel Pysz, 2025. "Modeling a Financial Controlling System for Managing Transfer Pricing Operations," Sustainability, MDPI, vol. 17(14), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6650-:d:1706549
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    References listed on IDEAS

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    1. Valentyna Kukharets & Rasa Čingiene & Dalia Juočiūnienė & Savelii Kukharets & Egidijus Blažauskas & Szymon Szufa & Andrii Muzychenko & Svitlana Beleі & Nazar Lahodyn & Taras Hutsol, 2024. "Regression Analysis of the Impact of Foreign Direct Investments, Adjusted Net Savings, and Environmental Tax Revenues on the Consumption of Renewable Energy Sources in EU Countries," Energies, MDPI, vol. 17(17), pages 1-14, September.
    2. Jan M. Smolarski & Neil Wilner & Jose G. Vega, 2019. "Dynamic transfer pricing under conditions of uncertainty – the use of real options," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 15(4), pages 535-556, October.
    3. Oleg Kucher & Oleksandra Hutsol & Liliya Prokopchuk & Taras Hutsol & Yurii Vasylyshen & Anatoliy Tryhuba & Jakub Gajda & Rafał Kornas & Andrzej Borusiewicz, 2025. "Application of Marketing Tools in the Bioeconomic Sector," Sustainability, MDPI, vol. 17(8), pages 1-34, April.
    4. Hong Zhang & Weiwei Jiang & Jianbin Mu & Xirong Cheng, 2025. "Optimizing Supply Chain Financial Strategies Based on Data Elements in the China’s Retail Industry: Towards Sustainable Development," Sustainability, MDPI, vol. 17(5), pages 1-19, March.
    5. Ning Geng & Mengyao Wang & Zengjin Liu, 2022. "Farmland Transfer, Scale Management and Economies of Scale Assessment: Evidence from the Main Grain-Producing Shandong Province in China," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
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