31.2.1.1.2 Required Parameters
You cannot define a Transfer Pricing Methodology successfully unless you specify the required parameters. The following table displays the parameters associated with each Transfer Pricing Method and specifies whether they are required or optional. The optional parameter fields display default values. However, you may decide to change the values for the optional Parameters Methodologies, such as the Redemption Curve or the Unpriced Account Methods.
Table 31-3 Required Parameters for a Transfer Pricing Methodology
| Transfer Price Method | Yield Curve Term | Historical Range | Lag Term | Rate Spread | Assignment Date | Mid Period | Term Points | Dimension Values |
|---|---|---|---|---|---|---|---|---|
| Cash Flow: Average Life | ||||||||
| Cash Flow: Weighted Term | ||||||||
| Cash Flow: Duration | ||||||||
| Cash Flow: Zero Discount Factors | ||||||||
| Moving Averages | Required | Required | ||||||
| Straight Term | Optional | |||||||
| Tractor Method | ||||||||
| Spread from IRC | Required | Required | Required | Required | Optional | |||
| Spread from Note Rate | Required | Optional | ||||||
| Redemption Curve | Required | Optional | Required | |||||
| Caterpillar | ||||||||
| Do not Calculate | ||||||||
| Weighted Average Perpetual | ||||||||
| Unpriced Account | Required | |||||||
| Tractor Method |