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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Related party balances.
Hello sir,
You have been doing a great job!
I have a small question. If a company’s payables balance consist of amounts due to related parties, (or receivables consist of amounts due from related parties), is it necessary to remove them from payables/receivables and reclassify them as amounts due to/from related parties?
Many thanks.
No – the related party disclosure requirements are satisfied by an explanatory note to the financial statements
