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Chapter 11

Related party transactions

2.1 Accounting for related party transactions

All transactions to or from related parties MUST be DISCLOSED in the financial
statements.

2.2 The need for related party transaction disclosures

Board decides to sell Related party will benefit

goods at discounted prices from their relationship with
to a related party the entity

Shareholders will be unaware
of these deals occurring
within their business if they
are not disclosed.

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