Benchmarking study is an analysis of annual reports of comparable independent companies, which is carried out with the purpose to assess the profit that independent comparable companies would be able to earn, if they operated in the particular industry and had comparable functions and risks.
For benchmarking purposes State revenue service uses database AMADEUS, which contains most of European enterprise’s annual reports. Database allows to find profit statistics for independent companies (e.g. cost mark-up and profit margin). The results, of selected independent companies, are applied to a tax payer’s costs/turnover to determine whether the profit is at arm’s length.
Depending on the type of transaction the benchmarking can also use other data sources, e.g., interest rates statistics, rental fees etc.
Our employees have extensive experience in doing benchmarking studies. We use subscription of Bureau van Dijk AMADEUS database (http://www.bvdinfo.com/). Subscription of the database, as oppose to outsourcing it from the third parties, allows to achieve the most precise and value-added results.
Our experience includes:
- Benchmarking in different industries – wholesale, manufacturing, logistics, management services, information technology etc.
- Design and development of the methodology for the data adjustments
- Practical implementation of the benchmarking data results