Valuation Issues Related to Buy-in Payments in Cost-Sharing Agreements
نویسندگان
چکیده
This paper studies valuation issues related to the buy-in payments in cost-sharing agreements. Three issues are studied. First, the paper shows how to calculate depreciation rates using the so-called "residual pro t split method" so that the resulting buy-in payment equals the market value of the pre-buy in intangibles. Second, the paper establishes that if a taxpayer elects to calculate the buy-in payment using a royalty rate, the taxpayer has an incentive to overestimate its forecast of the revenues of the subsidiary that makes use of the pre-buy in intangibles. Third, the paper shows how the "market cap" method can be implemented so as to calculate the buy-in payment correctly.
منابع مشابه
Economic Evaluation of Fiscal Regime of Buy-Back Contracts in Comparison with Production Sharing Contracts (Case Study: Azadegan Oil Field)
F iscal regime is one of the main differences between petroleum contracts. Fiscal regimes in oil contracts are divided to two main categories namely Concessionary and Contractual Systems. In contractual systems, the main difference between service and production sharing contracts is the way of compensation of contractor services which could be in cash or in kind. In production sharin...
متن کاملCoordination and profit sharing in a two-level supply chain under periodic review inventory policy with delay in payments contract
In this paper,a coordination model has been investigated for a two-level supply chain (SC) consisting of one retailer and one supplier under periodic review inventory system. The review period and the retailer’s safety factorare assumed to be decision variables. The retailer faces stochastic demand following a normal distribution with known mean and variance. Moreover, it is assumed that unmet ...
متن کاملWIDER Working Paper No. 2013/135 REDD+ as performance-based aid: General lessons and bilateral agreements of Norway
REDD+, when it officially became part of the international climate agenda in 2007, was an idea about payment to countries and projects for reducing emission from forests, with funding primarily from carbon markets. REDD+ has since become multi-objective; the policy focus has changed from payments for environmental services (PES) to broader policies, and international funding is mainly coming fr...
متن کاملInformal Payments in Healthcare: A Case Study of Kerman Province in Iran
Background Informal payments for health care, which are common in many countries, can have negative effects on health care access, equity and health status as they lead people to forgo or delay seeking care, or to sell assets to pay for care. Many countries are putting reforms in place with the aim of reducing informal payments. In order to be successful, such policies should be informed by the...
متن کاملMonetary value of quality-adjusted life years (QALY) among patients with cardiovascular disease: a willingness to pay study
The aim of this study was to estimate monetary value of a QALY among heart disease patients and to identify its determinants.A cross-sectional survey with face-to-face interview was conducted with 196 cardiovascular disease patients from two heart hospitals in Tehran, Iran, to estimate the value of QALY using disaggregated and aggregated approaches. The Euro Qol -5d (EQ-5D) questionnaire, visua...
متن کامل