(ii) performance measurement. In order to assess the share of a controlled participant in the expected benefits of covered intangible assets, it is necessary to measure the amount of reasonably expected benefits from hedged intangible assets on a consistent basis for all of these participants. See (f) (3) (iii) (E), example 8 of this section. When a controlled member transfers intangible assets to another controlled subject, the participant`s benefits on transferred intangible assets must be measured on the basis of the purchaser`s benefits, taking into account any consideration that the purchaser pays to the controlled subscriber (for example. B a licence fee). Expected performance is measured either directly by reference to estimated additional revenues, or to the costs saved by the use of covered intangible assets, or on an indirect basis, on the basis of certain measures that can reasonably be assumed to be related to the costs saved. These indirect bases for measuring expected benefits are described in paragraph 3, point iii), in this section. The expected benefits of a controlled participant must be measured on the most reliable basis, direct or indirect. In determining which of the two reasonably expected benefit bases is most reliable, the factors mentioned in section 1.482-1, point c) (2) (ii) (data and assumptions) must be taken into account. Normally, the base that provided the most reliable estimate for a given year should continue to provide the most reliable estimate in subsequent years, without the factors affecting the reliability of the estimate changing significantly.
Whether a direct or indirect assessment basis, corrections may be necessary to account for significant differences between the activities of controlled participants to exploit their interests on recorded intangible assets. See example 6 of paragraph f) (3) (iii) (E) of this section. (2) provide a method of calculating the share of each controlled participant in intangible development costs on the basis of factors reasonably likely to reflect that participant`s share of the expected benefits; To reflect the impact of the buy-in, we amend the previous example by assuming that the parent and sub element were added on January 1, 2007, so that they were together for a year before establishing the cost-sharing agreement. Let us also assume that in 2007, the parent company spent $400 million on the development of intangible assets and that each of the parent company`s profits and the lower part of the parent company in 2007 was $30 million per year. Both companies will continue to share the costs of intangible assets developed after January 1, 2008, but in addition, the portion will be required to make a one-time payment to the parent company for the present value of the intangible asset prior to purchase.4 Based on the same data as before, this payment amounts to USD 300 million, cash value ($30 million/10%) intangible sub-assets before purchase. (1) Transmissions to which Section 421 applies. For the purposes of this paragraph only, d) (2) (iii) (A) Section 421 does not apply to the transfer of shares due to the exercise of an option consistent with the provisions of Section 422 (a) or 423 (a). (ii) the amounts paid under a cost-sharing agreement are reimbursements; and the index. There is no legislative provision or directive dealing with the local or cross-border tax consequences of cost-sharing agreements.