After reviewing the nature of the request, the availability of information and the willingness of the subject to address potential problems identified during or after the pre-file meeting, it will be decided whether or not the taxpayer will be included in the next phase of the APP process. A subject who is invited to continue the process must establish a detailed app filing describing the specifics of the recorded transactions, including a detailed analysis of transfer prices and all the information necessary to enable the rating agency to verify and complete its own transfer pricing analysis. After the credit rating agency has received the full submission of the APA from the subject, it is decided to accept or reject the subject`s application for Apa. The APP process is based on cooperation and transparency with the free flow of information. The APA process differs from the credit rating agency`s audit process, as the focus is on planned or future tax years and not on past tax years. In essence, an APA is an agreement between a tax payer and a tax authority that establishes an agreed transfer pricing methodology that must be applied prospectively to set a transfer price appropriate for related party transactions. The setting of a transfer price represents the principle of arm length, as described in the OECD guidelines on transfer pricing for multinational companies and tax administrations and in the rating agency`s information circular 87-2, International Transfer Pricing. In order to ensure the transparency of the program and to ensure that applicants are able to meet the requirements of the APA, the credit rating agency ensures that taxpayers have the necessary information about their transfer pricing methods and covered transactions. On the basis of this feedback, a taxpayer may decide not to sue the APA, while in other cases, the rating agency may decide that it would not be appropriate to accept or pursue an APA with a subject. If the rating agency rejects an APP application or does not wish to continue the APA process, an explanation of the rating agency`s decision is provided to taxpayers. However, it is possible that a subject may be able to negotiate a unilateral APA involving only the taxpayer and the IRS.