Irrxaxce (No. 2) No,9 tr ansaction.'When it is possible to determine an arffi's length rerluneration for some of the functions performecl by the associated persons in connection r,vith the transaction using one of the approved methods describecl in subparagraphs (a) to (d) above, the transactional profit split method shall be applied based on the cornmon residual profit that results once such functions are so remunerated. (6) Where, taking accclunt of the criteria described in subparagraph (3), a comparable uncontrolled price method described in subparagraph (sXa) and an approved method described in subparagraph (5Xb) to (e) can be applied with equal reliability, the deterrnination of arm's length conditions shall be made using the comparable uncontrolled price method. (7) Where, taking account of the criteria described in subparagraph in subparagraph (5Xa) to (c) and an approved method described in subparagraph (5Xd) to (e) can be applied with equal reliability, the determination of arm's length conditions shall be rnade using the method described in subparagraph (5Xa) to (c). (2) , an approved method described (8) It shall not be necessary to apply rnore than one method to detersrine the aflrros length remuneration for a given controlled transaction. (9) A transfer pricing ffiethod other than the approved methocls contained in subp aragraph (5) rnay be applied rvhere the Commissioner is satisfied that- (a) none of the approved methods can be reasonably applied to determine arrn's length conditions for the controlled transaction; and (b) such other method yields a result consistent with that which would be achieved by independent persons engaging in comparable uncontrolled transactions under cornparable c.ircumstances. ( 10) When a rnethod other than the approveC methods contained in subparagraph (5) is used it shall establish that the requirements of subparagaph (9) have been satisfied. When applying a cost plus, resale price or transactional net margin method, provided under subparagraph (5), it shall be necessary to ( 11) select the pzfiy,hereinafterreferred to as the "testedpartY",to the transacticrn for rvhich a flnancial indicator, mark-up on costs, gross margin, or net profit indicator, is tested under the applicable transler pricing method. {I2) The selection of the tested party shoulcl be consistent with the functianal analysis of the transaction. (13) Where a taxpayer has used a transfer pricing method to establish the remuneration of its controlled transactions and that transfer pricing rnethod is consistent with the provisions of this paragraph, then the Comrnissioner's examination of rvhether the conditions of the taxpayer's controlled transactions are consistent u'ith the arm's length principle shall be based on the transfer pricing method applied by the taxpayer. r86 20ls