comparable obligation
[kəm-ˈper-ə-bəl ə-ˈbli-ˌgā-shən]
nounpl: comparable obligations
obrigação comparável
1. A legal or financial obligation that is similar in nature, scope, or terms to another obligation, used as a basis for comparison or valuation
In transfer pricing analysis, the comparable obligation method uses similar transactions to determine fair market value.
Na análise de preços de transferência, o método de obrigação comparável utiliza transações similares para determinar o valor justo de mercado.
2. In corporate finance, an obligation of similar risk profile and maturity used to establish benchmark rates or terms
The bond was valued using comparable obligations in the same credit rating category.
O título foi avaliado utilizando obrigações comparáveis na mesma categoria de classificação de crédito.
3. In tax law and transfer pricing, transactions between unrelated parties that serve as reference points for pricing related-party transactions
The company presented comparable obligations to justify its inter-company pricing strategy.
A empresa apresentou obrigações comparáveis para justificar sua estratégia de precificação entre empresas.
This is primarily a technical term used in international business, tax law, and financial regulation. In Brazil, it is commonly encountered in transfer pricing documentation required by the federal tax authority (Receita Federal) for multinational corporations. In the USA, the term is central to IRS regulations governing related-party transactions. The concept reflects the principle that related-party transactions should be priced as if they were between unrelated parties.
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