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Related Parties Disclosure

LouiseRLouiseR Feels At HomeRegistered Posts: 59
I'm getting myself a bit confused and it's been a long day!

I am completing Company A statutory accounts and not sure if I need to disclosure transactions made with two other companies as follows:

Company A has 2 shareholders (not directors) and 2 directors (not shareholders), 4 people in total.
Company B has the same director as Company A but is not a shareholder of Company B
Company C has the same director as Company A and is a shareholder of Company C.

Company B and C have both invoiced Company A for services. Do these need to be disclosured as the directors are not shareholders in Company A?

Hopefully someone can make sense of the above!




  • Steve CollingsSteve Collings Experienced Mentor Registered Posts: 997

    Yes they do need disclosure. FRS 8 was revised following implementation of Companies Act 2006. The long-winded definitions of a related party (pre CA06) were significantly reduced! Following this "overhaul" if the party is a member of the entity's "key management" (FRS 8 para 2.3) which clearly would refer to a director (directors are also specifically related parties under FRS 8). Therefore Co's B and C become related to Co A.

    Hope that helps.

  • LouiseRLouiseR Feels At Home Registered Posts: 59
    Yes thank you
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Hi Steve

    Not required for FRSSE?
  • Steve CollingsSteve Collings Experienced Mentor Registered Posts: 997
    FRSSE is only usually reissued every couple of years so sometimes doesn't reflect subsequent amendments to the mainstream FRSs until a revised version of FRSSE is brought out. FRSSE was amended and reissued to take account of Companies Act 2006 requirements (FRSSE (effective April 2008)) - which is why you could not adopt FRSSE early (ie until a/p commencing on or after 6/4/08). FRSSE is merely a condensed version of the mainstream FRSs so in this instance, you would still disclose the above transactions as related party transactions even if you were applying FRSSE.

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