Frazer LLP Blog

Why do we disclose related party transactions?

Aug 19, 2016 11:10:45 AM / by Bethany Smith, CPA posted in Related Party Transactions, Financial Statements

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A related party transaction is a business deal or arrangement between two parties who are joined by a special relationship prior to the deal. A commonly seen related party transaction is a shareholder owning real estate and having a lease agreement with the corporation he owns shares in for the office space.

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