Related party disclosures

Related party disclosures

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Having dealt with mostly micro-businesses for many years I'm a bit out of touch on related party disclosures for a limited company. I've read up the relevant professional guidance but am still not entirely sure I've grasped it correctly.

New client is a 2 director Ltd Company with half their business sub-contracted to relatives - sons, daughters, brothers, sisters, in-laws. To what extent is that relevant for related party disclosures in the company's accounts? I thought that I only needed to disclose any monies owed to/from those individuals and the company at the year end plus their relationship to the directors. But their previous accountant has been disclosing the sums paid to each person by the company for the year too so I'm having doubts.

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By johngroganjga
26th Mar 2015 13:16

Yes you have to disclose the transactions during the year as well as the year end balances.

 

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Replying to lionofludesch:
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By SQUIRE
26th Mar 2015 14:23

Abbreviated accounts RPT disclosure

johngroganjga wrote:

Yes you have to disclose the transactions during the year as well as the year end balances.

 

 

To add to this you are not required to disclose in the abbreviated accounts - assuming you will file them, amounts owed too Directors (only overdrawn loan accounts must be disclosed).

If you would like to know the depth of the disclosure have a read of FRS8, might help you sleep too!

 

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Teignmouth
By Paul Scholes
26th Mar 2015 20:34

Or, if FRSSE accounts...

have a look at Section 15 and page 116

https://www.frc.org.uk/Our-Work/Publications/ASB/FRSSE-(effective-April-2008)-(issued-June-2008).pdf

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By Bluesation
30th Mar 2015 12:40

Thanks for those replies. It looks like I've a bit of reading to do as it's clearly part of my CPD that I've neglected.

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