Accounting
Thomson Reuters Adds Loan Module to Transfer Pricing Documenter
The ONESOURCE Transfer Pricing Loan Module, which incorporates a subset of key financial data from Moody’s Analytics’ RiskCalc, has been designed to facilitate the benchmarking, documentation and auditing of intercompany loans and improve risk management.
Jan. 16, 2015
Thomson Reuters has released a new module for its Transfer Pricing Documenter solution to improve loan processing and compliance.
The ONESOURCE Transfer Pricing Loan Module, which incorporates a subset of key financial data from Moody’s Analytics’ RiskCalc, has been designed to facilitate the benchmarking, documentation and auditing of intercompany loans and improve risk management.
“Given the focus of BEPS on loan analysis, in addition to the rapidly changing transfer pricing landscape, tax professionals are searching for a way to arm themselves with the most comprehensive data available,” said Brian Tully, vice president and head of ONESOURCE Transfer Pricing at Thomson Reuters. “By using Moody’s Analytics’ best-in-class credit data and DealScan’s loan databases and directly integrating them into our ONESOURCE Transfer Pricing Documenter solution, users can be confident in their third-party loan analysis while remaining compliant with all regulations.”
Some of the features of the loan module include:
• Integrated Implied Credit Ratings: Moody’s Analytics’ framework computes implied credit ratings using RiskCalc, a private-firm probability of default solution that encompasses 29 region and industry-specific models. These data points are automatically integrated into the ONESOURCE Transfer Pricing Documenter software and included in transfer pricing documentation reports to enable accurate loan benchmarking, valuation and review.
• Benchmark Against Comparable Loan Data: With access to 220,000 third-party loan transactions in a single database, users working in the Documenter software can search for comparable loans using the credit ratings they have obtained and import the results into Documenter to build their analysis.
• Loan Risk Assessment: Using loan data from DealScan, ONESOURCE Transfer Pricing Documenter allows users to calculate the credit risk spread by stripping out the relevant risk-free rate for these comparable loans.
For more information on the ONESOURCE Transfer Pricing Loan Module solution, visit https://tax.thomsonreuters.com/products/brands/onesource/onesource-transfer-pricing/loan-analysis.