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Related parties

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Related parties

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.
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  • Author
    Posts
  • November 3, 2023 at 10:25 pm #694363
    Gian97
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    Hi

    In a scenario where a potential related party bought 5% shares of the equity shares of the reporting entity. My question is, even if she acquired 20% (and achieve significant influence), why would that have to be disclosed as a related party transaction in the first place if the transaction is not with the reporting entity but with group shareholders?

    Thanks in advance!

    November 4, 2023 at 7:12 pm #694404
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3440
    • ☆☆☆☆☆

    Purchase of shares in the company probably not RPT.

    Once she has 20%, transactions with the company might well be RPT>

    IAS 24 = judgement call. Examiner will be tolerant.

    🙂

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