Comparable Profit Method (CPM) Law and Legal Definition
Under US regulations, Comparable Profit Method (CPM) is a method to determine an arm's length consideration for transfers of intangible property. If the reported operating income of the tested party is not within a certain range, an adjustment will be made. In effect this method requires a comparison of the operating income that results from the consideration actually charged in a controlled transfer with the operating income of similar taxpayers that are uncontrolled.
Legal Definition list
- Comparable Profit Method (CPM)
- Comparable Pay Band [Administrative Personnel]
- Comparable Accommodation [Rent Control]
- Comparability Analysis
- Company Union
- Comparable Rectitude
- Comparable Replacement Dwelling
- Comparable Uncontrolled Price (CUP) Method
- Comparable Uncontrolled Transaction (CUT) Method
- Comparable Worth
- Comparatio Literarum
