Transfer Pricing in Acquisition Accounting Multi-National Corporations (MNC) play a significant role in the economic growth of both developed and developing countries. They create better employment opportunities and in some cases their corporate social responsibility leaves permanent footprints in the African Society. Their departures may affect Growth Domestic Products (GDP) of some economies. However, MNCs come with their challenges since their owners are outside the boarders of the countries they invested in. Most African countries have struggled with externalisation of foreign currency, inevitably resulting in volatile exchange rates. As much as countries develop and implement policies that limits the externalisation, MNCs may find loop holes around this matter. Transfer pricing is used as a means of externalising foreign currency. The cases are complicated such that they require competent professionals to address the loss of critical national revenue. For instance, Nigeria has seen a rise in manipulation of transfer pricing by MNCs. To appreciate the extent of this matter download and read the journal article entitled 'Manipulation of transfer prices by multi-national companies in Nigeria' published by South African Journal of Economic and Management Sciences. International Accounting Standards Board (IASB) has attempted to address transfer pricing manipulation through the issuance of relevant accounting standards. Most of these standards are for related party transactions amongst members of the same group of companies during the consolidation process. Such disclosures to an extent can help unearth the damage done through interrelated group transactions. You have been approached by the Ministry of Finance (MoF) in Zambia to advise the government on how the country can mitigate the damage caused by MNCs through transfer pricing manipulation having learnt of the Nigerian case. MoF has specifically requested that you summarise the negative experiences in Nigeria that may or are affecting Zambia currently. Required a) Discuss the meaning of transfer pricing and transfer pricing manipulation (10 Marks) b) Evaluate the extent to which international accounting standards that govern related party transactions can assist MoF to mitigate this challenge, with specific reference to consolidation process. You are to explain these procedures and evaluate how they can be used as a means of identifying the ways in which transfer pricing is manipulated.