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relatedparty

Related party refers to a person or entity that is related to the reporting entity through control, joint control, significant influence, or close family relationships, or through relationships with entities that themselves are related. Typical related parties include subsidiaries, associates, joint ventures, parent companies, entities under common control, and key management personnel (KMP) and their close family members.

Related party transactions are transfers of resources, services or obligations between related parties, regardless of whether

Disclosure and reporting requirements are established by accounting standards. IFRS IAS 24 requires disclosure of related

Governance and practice typically involve identifying related parties, obtaining board approval for related party transactions, and

See also: related party transaction, IAS 24.

a
price
is
charged.
Examples
include
sales
or
purchases
of
goods
and
services,
licenses,
leases,
guarantees,
loans,
and
transfers
of
assets.
Terms
of
such
transactions
may
differ
from
those
with
unrelated
parties,
potentially
affecting
reported
performance
or
financial
position.
party
relationships,
transactions,
and
outstanding
balances,
along
with
commitments,
to
enable
users
to
understand
potential
effects
on
financial
statements.
Details
may
be
provided
for
material
relationships
and
events;
in
some
cases,
notes
must
summarize
the
nature
of
relationships
and
the
impact
on
financial
results.
US
GAAP
has
similar
disclosure
requirements
under
ASC
850.
The
emphasis
is
on
transparency
and
the
ability
of
users
to
assess
risks
from
related-party
dynamics.
maintaining
a
related
party
registry.
Auditors
evaluate
the
adequacy
of
disclosures
and
whether
terms
are
arm’s
length.
Proper
management
of
related
party
matters
helps
mitigate
conflicts
of
interest
and
reduces
the
risk
of
earnings
manipulation.