Hi all, I just recently started a job at a big4 as a Transfer Pricing Consultant, and I really love it, and can see myself making a career in it. Atleast for the next 5 years or so, unless there are no exit opportunities whatsoever, but this is not the discussion here. WHat I want to know is if it is likely to count towards my CFA experience this work, otherwise, its probably not worth doing the exams, as I will never make a full member. I know there is a guy n my department who is a CFA and managed to get his Transfer Pricing experience to count, but that was many years back not I believe. So basically does anyone have any clue here? I dont want to waste my time studying this winter and spring for a qualification im not going to be able to get anyway
doesnt help much. Anyone else before joeydvire puts his end on this
Weren’t you the one planning on moving to Denmark? In that case, why not pursue the CFA exam? You’ll never know where you’ll be in six months or a year. Write this guy and ask: http://www.linkedin.com/pub/0/942/641 and there are others coming up when you cross search “transfer pricing” and “CFA”.
no dont continue…I dont want a transfer pricing consultant muddying up the CFA designation
Yep im in Copenhagen already, working in TP And the women here are hot scandinavian babes!!! too bad i got a girlfriend though 
What is Transfer Pricing?
maddane Wrote: ------------------------------------------------------- > Hi all, > > I just recently started a job at a big4 as a > Transfer Pricing Consultant, and I really love it, > and can see myself making a career in it. Atleast > for the next 5 years or so, unless there are no > exit opportunities whatsoever, but this is not the > discussion here. > > WHat I want to know is if it is likely to count > towards my CFA experience this work, otherwise, > its probably not worth doing the exams, as I will > never make a full member. I know there is a guy n > my department who is a CFA and managed to get his > Transfer Pricing experience to count, but that was > many years back not I believe. So basically does > anyone have any clue here? I dont want to waste my > time studying this winter and spring for a > qualification im not going to be able to get > anyway from what i know, transfer pricing is more about setting a price for those internally transferred products within departments (it must be more complicated than that)…but the bottom line is whether ur work adds value to the company. if it is just a matter of accounting…(say in the end everything consolidates and cancels each other), then there is no value created…then i doubt cfa would qualify that experience. or u can call up cfa institute and ask them to evaluate your working experience.
does an equity analyst add value?
maddane Wrote: ------------------------------------------------------- > does an equity analyst add value? well, i should revise it… not ‘add value’, but change the value of the company, cos ur opinion will have an impact on the stock price. and the stock price will determine the mkt cap. and mkt cap will alter the firm’s financing ability or stakeholder’s confidence…and of course, if the company wanted to raise funds via a secondary stock offering or debt financing, they would wanna their share price to be high, and they would wanna the equity analyst to say good stuff about them. so i would say if ur finance job can alter the value of the company (50% of the time), cfa would likely prove ur working experience.
very much so. Determining transfer prices affects revenues, and affects taxes, and therefore cashflows, and therefore the valuation of the company. But being a marketer for a company can affect its value too. ie create a great campain, results in more sales, increases profits, and thereby value of company
maddane Wrote: ------------------------------------------------------- > very much so. Determining transfer prices affects > revenues, and affects taxes, and therefore > cashflows, and therefore the valuation of the > company. > > But being a marketer for a company can affect its > value too. ie create a great campain, results in > more sales, increases profits, and thereby value > of company ‘revenue’ will get consolidated cos the mkt values the company as a whole. ‘campain’ is not a direct impact on the company’s value. but transfer pricing could be a big tax saver, which will impact the firm’s value. so yes, u are right. but, the tricky part is the word “direct impact”. cfa has a list of jobs that they doom to be applicable, and the rest of the jobs will have to have a DIRECT impact on the value of the company. so it depends on how much cfa thinks ur job will impact the capital mkts. but if u can put what u said above to ur job description and make the cfa ppl believe what u do adds material value to the company, u should be fine. probably that is why they approved that guy’s working experience.
yep, not to mention things lke the transferring of intangible property, that has a big impact on profits, and analysis of intangibles acquired in M&A transactions etc
okay, i guess u made ur mind to pursue ur cfa since u are confirmed ur experience will count?
I am working on a TP case where the IRS is asking for a $1billion back-dated adjustment on a technology transfer related to a merger. TP experience may not be considered as “direct” qualifying experience but you can definitely make it sound qualifiable. In terms of making a career out of this, check out the term “golden handcuffs”
As I said before, I think TP isbt golden handcuffs. It uses a lot of skills that are transferable to other jobs
rachel.li52 Wrote: ------------------------------------------------------- > maddane Wrote: > -------------------------------------------------- > ----- > > Hi all, > > > > I just recently started a job at a big4 as a > > Transfer Pricing Consultant, and I really love > it, > > and can see myself making a career in it. > Atleast > > for the next 5 years or so, unless there are no > > exit opportunities whatsoever, but this is not > the > > discussion here. > > > > WHat I want to know is if it is likely to count > > towards my CFA experience this work, otherwise, > > its probably not worth doing the exams, as I > will > > never make a full member. I know there is a guy > n > > my department who is a CFA and managed to get > his > > Transfer Pricing experience to count, but that > was > > many years back not I believe. So basically > does > > anyone have any clue here? I dont want to waste > my > > time studying this winter and spring for a > > qualification im not going to be able to get > > anyway > > from what i know, transfer pricing is more about > setting a price for those internally transferred > products within departments (it must be more > complicated than that)…but the bottom line is > whether ur work adds value to the company. if it > is just a matter of accounting…(say in the end > everything consolidates and cancels each other), > then there is no value created…then i doubt cfa > would qualify that experience. > > or u can call up cfa institute and ask them to > evaluate your working experience. alot of transfer pricing consulting is done on a contingency basis, TP consultants get hired to extract as much tax savings as possible while staying within the boundaries of the tax code.
maddane Wrote: ------------------------------------------------------- > Hi all, > > I just recently started a job at a big4 as a > Transfer Pricing Consultant, and I really love it, Is this around the €35-40k ball park?
I also work in Big 4 firm. Do people think audit experience is more valuable than Transfer Pricing if I wanted to eventually get a job as an analyst. What would people recommend doing? Audit, Advisory, or TP or does it depend exactly what I am looking to do? Also, Maddane the Big 4 firm TP group i work at has CFA as an option for credentialing.
bchadwick Wrote: ------------------------------------------------------- > What is Transfer Pricing? Transfer Pricing as I know it basically means “rewarding the team that helped contribute towards the success of the x-border deal”. e.g. the deal is mandated and executed in HK, but you have say, the Singapore team working on it too. Revenue will be booked in HK books, and then a portion of the revenue is transfer priced to Singapore, to recognize the efforts put in by the Singapore team. How much the Singapore team depends on how much they did for various parts of the deal, e.g. origination, term sheet negotiation, execution, risk management etc. It is for legal and accounting purpose, but it remains an unknown as to whether it affects your bonus at the end of the day, given that transfer priced revenue is a portion of our (on a legal entity basis) revenue. The way I see it - a lot of the times it is taking $$ from the left pocket and putting it in your right pocket if the legal entities belong to the same umbrella. I may be totally wrong about this though.