Share this content

Related party dislosure FRS102

Related party dislosure FRS102 for 50:50 owned companies

Didn't find your answer?

I have a client which is 50:50 owned by 2 un-related directors and equally controlled on a day to day basis. These same two directors also 50:50 own a couple of other companies. There has been arms length trading between some of these companies during the year. Do I need to disclose this trading between the companies under related party rules under FRS102? Assuming it is significant influence rather than control.

Replies (6)

Please login or register to join the discussion.

avatar
By paul.benny
04th Aug 2021 10:05

Yes

The directors (together) have significant influence over all the companies involved

Thanks (0)
By jon_griffey
04th Aug 2021 16:57

Is that FRS102 or FRS102 1A?

Thanks (0)
Replying to jon_griffey:
avatar
By Karen Clipston
04th Aug 2021 17:25

FRS102 1A

Thanks (0)
Replying to Karen Clipston:
avatar
By paul.benny
04th Aug 2021 18:27

That changes it.
Para 1AC35 limits disclosure to transactions not at arms length and the test for being related is narrower.

FRS102 can be downloaded for free from FRC website https://www.frc.org.uk/accountants/accounting-and-reporting-policy/uk-ac...

Thanks (0)
Replying to paul.benny:
avatar
By Karen Clipston
04th Aug 2021 19:15

Thank you

Thanks (0)
Replying to Karen Clipston:
By jon_griffey
05th Aug 2021 10:01

In that case FRS102 1AC.35 only requires disclosures relating to: -

(a) owners holding a participating interest in the small entity;
(b) companies in which the small entity itself has a participating interest; and
(c) the small entity’s directors [or members of its governing body]

Other companies in which the directors have an interest do not come under any of these.

Thanks (0)
Share this content