Related party disclosure

Related party disclosure

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I am preparing accounts for a company under FRSSE 2015. The company has various associated companies i.e. other companies under the same control. It trades with some of the associated companies on normal commercial terms. As far as I can see, under the FRSSE 2015, I will just need to disclose the names of the associated companies and the amounts due to and from these companies at the year end. I should be grateful for confirmation, or guidance if I have got this wrong. 

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By TerryD
16th Sep 2015 10:08

You also need to disclose the nature of the relationship, the amounts of the transactions, analysed by type (sales, purchases, management charges, etc.), and so on. Para 15.1.

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Replying to Chris.Mann:
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By AndyG
16th Sep 2015 12:14

Related party disclosure

Thank you for that TerryD. However, paragraph 15.7(c)(iv) states: Disclosure, as a related party transaction, is not required of (inter alia) transactions with the parties listed below as a result of their role as (inter alia) a customer or supplier. This would appear to give exemption from disclosure to transactions in the normal course of trade. Have I misinterpreted this?   

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By TerryD
16th Sep 2015 14:11

"simply"

The word you're missing from 15.7 is "simply". These parties aren't related simply as a result of their role as customer, supplier, etc., they are related by virtue of common ownership.

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By AndyG
17th Sep 2015 14:56

FRSSE 2015 para 15.7

Thank you again TerryD. I was misreading this paragraph. I was probably trying to read into it something that wasn't there in order to save myself the trouble of putting all the related party information into the accounts- something the previous accountant hadn't done! 

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By TerryD
17th Sep 2015 16:49

That's doubly unlucky - now you have to get the details for the comparative figures as well!

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