What needs to be disclosed for a related party transaction?

The annual financial statements have to include a note to the accounts for disclosure of any related party transactions. If there are no related party transactions in the period that require disclosure, The Charities Statement of Recommended Practice 2015 requires that this fact must be stated. For those related party transactions which must be disclosed, the note should provide the following information:

  • The names of the parties involved in the transaction
  • A description of the relationship between the parties
  • A description of the transaction and the amounts involved
  • Any amounts due from or to the related parties at the year-end, or provisions for bad or doubtful debts with related parties
  • The terms and conditions of the transaction and details of any guarantees given or received.

Any other elements of the transactions necessary for an understanding of the financial statements, such as particulars of relationships that led to the transactions, or other information.

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