Associated enterprises rule permits arm's length profit adjustments and corresponding tax adjustments to address related party distortions. Associated enterprises rules permit treating conditions between related cross-border enterprises that differ from independent-enterprise conditions as grounds to include in the profits of an affected enterprise amounts that would have accrued but for those conditions, allowing taxation of those adjusted profits; where one State taxes such profits, the other State must make an appropriate corresponding adjustment, with due regard to the Agreement and consultation between competent authorities as necessary.