There are two big issues that preparers of annual accounts need to get their heads around. One is the need for the preparation of what is known as “consolidated” accounts and the other is reporting on related party transactions.
Related party transactions are more common and need to be thought about. I have prepared a document on what a related party transaction is and who is a related party for financial reporting purposes. There are examples included.
I need feedback please. I am interesting in YOUR examples of what you consider to be a related party transaction. Send me your examples and I will provide you with a some comment on it. My idea is to pool all the examples together and then add them to the document so you can refer to it when you do your annual accounts.
Related Party Transactions – DRAFT Explanation Document – December 2015