Related party transactions

Related party transactions

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Small Ltd Co, FRSSE Jan 2015.

Do you disclose the following as related party transactions:

  • Wages to the daughter for admin
  • Rent - paid to the directors for home office
  • Business expenses reimbursed by the Ltd Co

I normally do, but just wanted to double check that I'm not over -disclosing

Thanks

Replies (4)

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By johngroganjga
16th Mar 2016 16:01

I would disclose the rent only.

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By Duggimon
16th Mar 2016 16:10

Agree

Only the rent qualifies as a related party transaction, reimbursed business expenses are at no gain to the director and are irrelevant for RP purposes and genuine commercial wages paid to the daughter are simply wages.

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By jon_griffey
16th Mar 2016 16:21

Emoluments are exempt from disclosure 15.7(b) FRSSE 2015.  I would probably include reimbursed expenses under this, or on the grounds of materiality.

I note that FRS102 only requires disclosure of material transactions the small entity has entered into that have not been concluded under normal market conditions. 

It is not clear how 'normal market conditions' should be assessed.

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By thomas
16th Mar 2016 18:31

The business expenses are the most significant in terms of value. About £10k in a Ltd co that turns over £120k

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