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Chapter 14

Disclosing related party transactions

2.1 Accounting for related party transactions

All transactions between related parties must be disclosed in the financial
statements, as well as any outstanding balances.

2.2 The need for related party transaction disclosures

Related party will show
Board decides to sell improved margins as a
goods at discounted prices result of their relationship
to a related party with the entity

Without disclosure,
shareholders and lenders
would be unaware of these
transactions.

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