What are related party transactions?

A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged, including:

  • Purchases or sales of goods
  • Donations of money or other assets
  • Supply of services
  • Provision of loans and guarantees

All related party transactions should be carefully considered to ensure that the terms are appropriate and payments made in accordance with the agreed policies and procedures. Not all related party transactions have to be disclosed, but it is important to recognise all the transactions that come within the definition.

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