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Framework · Methods · 5 min
Tested-party decision sheet
A compact decision record for functions, risks, data reliability, segmentation and the availability of comparables.
01
Selection principle
The tested party is generally the party for which the selected one-sided method can be applied most reliably and for which the most reliable comparables can be found. The choice must follow the functional analysis.
02
Record the basis
- Functions performed and decision-making authority.
- Assets used, including material intangibles.
- Risks assumed and evidence of risk control.
- Availability and quality of segmented financial data.
- Availability of reliable external comparables.
03
Review point
If the selected party controls material risks or contributes unique intangibles, a one-sided method may be difficult to support. Escalate this before benchmarking begins.