We offer several databases via subscription to determine arm's length consideration for transfer pricing analysis and intangible asset valuation. We also provide economic consulting and training.
RoyaltyStat is the premier database of royalty rates and license agreements. In addition, we provide global company financials and annual reports to find comparables, and UNIDO industrial profit markup statistics that may be used (depending on the tax authority and in the absence of local or regional
comparables) to establish safe harbors for manufactured tangible goods exported to cross-border controlled distributors. We provide indispensable data and statistical tools to support the valuation of intangibles and the calculation of arm's length gross and "net" operating profit ratios under the OECD Transfer Pricing Guidelines and the United Nations Practical Manual on Transfer Pricing for Developing Countries.
License agreements are "material contracts" sourced from the U.S. Securities & Exchange Commission (SEC) and Canada's SEDAR archives. Every license agreement in RoyaltyStat contains a disclosed royalty rate. We report the highest among tiered royalty rates.
After two years of development, we launched our proprietary royalty rates cum license agreements database online on February 2, 2000. Today, RoyaltyStat provides several regularly updated databases to support transfer pricing planning and compliance.
global company financials
RoyaltyStat's database of global publicly-traded company financials is designed to find comparables and determine arm's length profit ratios using the Resale Price, Cost Plus, TNMM (CPM in the U.S.A.), and Residual Profit Split methods.
We determine every comparable gross and "net" operating profit ratio described in the OECD Transfer Pricing Guidelines. The global company financials are licensed from Standard & Poor's Capital IQ Compustat.
global annual reports
RoyaltyStat's database of global Annual Reports is designed to facilitate comparability analysis of company-based profit methods, including Resale Price, Cost Plus, CPM or TNMM, and Residual Profit Split.
Annual reports are necessary to establish comparability of accounting standards and functions performed because they contain company descriptions, disclosure of business segments, accounting notes, and thus help make comparability analysis more defensible to audit challenges.
UNIDO Industrial Statistics
The UNIDO Industrial Statistics (INDSTAT4 2013 ISIC Rev.3) database contains data from 1990 to 2010 for 135 countries. The data are arranged at the 3- and 4-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC) Revision 3 pertaining to 151 manufacturing sectors. The UNIDO database contains annual data about the Number of establishments, Employment,
Wages and salaries, Output, Value added, and Gross fixed capital formation.The industry data can be searched by Country, Industry and Year. The data are originally stored in the prevailing national currency values at current prices, but are converted from national currency into current US Dollars, using the average period exchange rates from the IMF's International Financial Statistics, series "rf".
RoyaltyStat provides economic consulting in transfer pricing and the valuation of intangibles. Applicable methods for inter-group manufacturers and distributors of tangible goods and for the provision of services consist of comparable company-based profit ratios (Cost Plus, Resale Minus, and TNMM).
Methods for the transfer (sale or license) of intangibles include comparable royalty rates under the CUP method, residual profit split based on company comparables to measure "routine" profit ratios, comparable asset acquisition prices, and the discounted cash flow of projected royalties, upfront fees, and milestone payments.
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Clients include tax authorities, universities, corporations, accounting, consulting and law firms.