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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Sustainability
At P&A Grant Thornton sustainability is at the core of our mission. We are committed to fostering a healthier planet through innovative practices that reduce our environmental footprint, promote social responsibility, and ensure economic viability for future generations.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Behind the Numbers: People of P&A Grant Thornton
Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
Understanding Resale Price Method (RPM)
The Resale Price Method (RPM) is one of the five main transfer pricing methods used to determine the arm's length price for transactions between related parties, especially in the context of international taxation.
RPM is used when a product is purchased from a related party and subsequently resold to an independent party. The method begins with the resale price to the independent party and subtracts an appropriate gross margin and adjust for other costs associated with the purchase of the product. This results in the arm's length price for the original transaction between related parties.
Applicability of RPM
- When the reseller adds minimal value to the product (e.g., no significant processing or alteration).
- Commonly used in distribution or retail scenarios.
- When comparable gross margins are available from similar independent companies.
Key Comparability Factors in RPM
1. Functional Comparability
a. The reseller should perform similar functions (e.g., distribution, marketing) as the comparables.
b. RPM is most reliable when the reseller does not add significant value to the product (e.g., no manufacturing or customisation).
2. Gross Margin Consistency
a. The method relies on comparing gross profit margins, not net margins.
b. Gross margins must be consistent across controlled and uncontrolled transactions, requiring adjustments for differences in accounting practices (e.g., treatment of discounts, freight, warranty costs).
3. Product Similarity
a. While exact product matching is not required,products should be broadly similar in nature and market positioning.
b. Minor differences (e.g., color or design of shoes) are acceptable if they don’t materially affect the margin.
4. Timing of Resale
a. RPM works best when the product is resold shortly after purchase, minimising the impact of market fluctuations or inventory holding costs.
5. Accounting Consistency
a. Differences in cost classification (e.g., COGS vs. operating expenses) can distort gross margins.
b. Adjustments may be needed to ensure an “apples-to-apples” comparison.
6. Market Conditions
a. Economic conditions, competitive landscape, and pricing strategies can affect resale prices and margins.
b. Regular review and updates are necessary to maintain comparability.
7. Availability of Comparable Uncontrolled Transactions (CUTs)
a. Reliable data on similar transactions between independent parties is essential.
b. If direct CUTs are unavailable, benchmarking against similar distributors may be used.
Advantages of the RPM Method
- Simple and straightforward when reliable comparables are available.
- Useful for routine distribution activities.
Limitations and Challenges
- Not suitable if the reseller adds significant value (e.g., manufacturing, customisation).
- Difficult to apply if gross margin data from comparable companies is not available or reliable.
- Sensitive to differences in accounting practices and cost structures.
(Chapter II: Transfer Pricing Methods, OECD Transfer Pricing Guidelines, January 2022 and BIR RR No. 2-2013)
The Resale Price Method is a practical and widely accepted transfer pricing approach for evaluating intercompany transactions involving resellers. By anchoring the analysis on the final resale price and adjusting for a market-based gross margin, RPM ensures that the transfer price reflects an arm’s length standard. While it offers simplicity and clarity in distribution scenarios, its effectiveness depends on the availability of reliable comparables and minimal value addition by the reseller. Proper documentation and functional analysis are key to its successful application.