Publication Details
Abstract
The increasing complexity of business operations, diversification of trade activities, and expansion of organizational structures have significantly increased the importance of segment accounting and internal control systems in trade enterprises. In this context, transfer pricing has become an effective managerial instrument for regulating intersegment transactions, evaluating segment performance, and strengthening internal control mechanisms. However, many trade enterprises continue to experience difficulties in establishing transparent procedures for recording and controlling intersegment operations, which limits the effectiveness of managerial decision-making and reduces the reliability of internal reporting.
This study investigates the role of transfer pricing in integrating segment accounting and internal control systems within trade enterprises. The research aims to develop a methodological framework for recording intersegment transactions and improving internal control procedures through transfer pricing mechanisms. The study employs comparative analysis, synthesis, economic modeling, and segment profitability assessment methods to examine theoretical approaches and practical applications of transfer pricing in segment management.
The findings indicate that transfer pricing contributes to the accurate allocation of revenues and costs among business segments, improves the accountability of responsibility centers, and enhances the effectiveness of internal control systems. The proposed framework enables trade enterprises to identify segment profitability more accurately, strengthen financial discipline, improve the quality of managerial information, and ensure greater transparency of intersegment transactions. The practical implementation of the proposed approach may contribute to the development of modern management accounting practices in trade enterprises and facilitate the harmonization of national accounting practices with international standards.