Functional analysis

A functional analysis is made up of three analyses: the analysis of the functions performed (analysis of functions), the analysis of the assets employed (analysis of assets) and the analysis of the risks assumed (risk analysis). The functional analysis is the starting point for carrying out the cost analysis.

The functional analysis is the starting point for the entire documentation: the choice of method, the selection of the tested party and the selection of comparable entities all depend on how functions, assets and risks are allocated. A discrepancy between the description in the documentation and the actual course of the transaction is one of the most common reasons for settlements being challenged. See risk analysis.