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Related party - Transaction with sole director’s father

Related party - Transaction with sole director...

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This is an unusual related party transaction in my experience.

The sole shareholding director paid about 40% of fees earned on an engineering design project to his father, who did the work on the design work on that project and had also secured the contract. The payment to the father amounted to about £20,000, so it is a material amount.

Does anyone know whether this is required to be disclosed in the Notes to the Accounts, under FRSSE ?

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By johngroganjga
30th Jun 2015 18:26

Yes of course.

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By Tim Vane
30th Jun 2015 21:57

It doesn't sound very unusual to me. Quite common for transactions with family members to require disclosure. Have you really not come across it before?

You can probably avoid a disclosure by producing Micro Entity accounts.

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