My recent article about 10 things you might not know about FRSSE prompted a wave of questions relating to various disclosure requirements, explains Steve Collings.
In this article I will cover some of the typical issues concerning related party disclosures and incorporate some of the more commonly asked questions.
Related parties and related party transactions
Most of us know what constitutes a related party and FRSSE states that two or more parties are related when, at any time during the financial period:
- one party has direct or indirect control of the other party
- the parties are subject to common control from the same source
- one party has significant influence over the financial and operating policies of the other party, to an extent that the other party might be inhibited from pursuing its own separate interests