Indonesian Journal of Social Sciences
ISSN 1978-760X
Vol. 3 / No. 2 / Published : 2011-01
Order : 5, and page :71 - 77
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Original Article :
The impact of the implementation of sarbanes oxley act 2002 towards transfer pricing policy on the us companies
Author :
- Sarah Anabarja*1
- The Departement of International Relations, Universitas Pembangunan Nasional
Abstract :
Along with the increasing power of global corporations, the tendency of the emergence of numerous competitions among corporations also enhanced. The number of privatized state-owned enterprises grows. At the local and national level, the records show the success of the government in releasing the state-owned company’s shares to the public to the private companies. At the international level, there are various negotiations conducted in order to enhance the agenda of trade liberalization which facilitated the rise of the corporations. Several important advancements aimed to strengthen the corporations must be accompanied by particular set of rules that allow them to compete and operate fairly. The compliance with the Sarbanes Oxley Act (SOA) can be tricky, especially for corporations that have used a relatively long approach to monitor transfer pricing. The process requires a systematic and rigorous implementation in order to be able to identify material transactions and to ensure that taxpayers do not only have the correct transfer pricing policy, but also to ensure this policy is followed. In the end, the policy chosen should be able to identify and lead to a better understanding of the risks and a greater ability to develop appropriate documentations, taking into account the specific risks and the parties involved. The emergence of the SOA was motivated by some major scandal involving various large corporations. SOA which aims to protect the interests of investors by improving the accuracy and reliability of corporate accounting in accordance with security laws.
Keyword :
Sarbanes Oxley Act, transfer pricing policy, corporations, the US, .,
References :
Simamora,(1999) Akuntansi Manajemen Jakarta : Salemba Empat
Archive Article
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 Volume : 3 / No. : 2 / Pub. : 2011-01 |
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