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Related party transactions
Addressing Related Party Transactions in Financial Reporting
December 10, 2023
How does financial reporting accommodate the disclosure of related party transactions?
Financial reporting mandates disclosure of related party transactions to prevent conflicts of interest and ensure transparency. Companies disclose these transactions in footnotes, describing the nature, terms, and significance of such dealings. These disclosures enable stakeholders to evaluate potential biases and assess the impact of related party transactions on a company's financial position and performance.
Tags : Related Party Transactions , Financial Reporting , Disclosure