Counselling 2009 appraiser examination: assessment of related party disclosure test
length of assessment test counseling
(1) generally refers to related parties associated parties. Party control, joint control or
significant influence on the other side, and two or more than two parties are of the
same party control, joint control or significant influence, constitutes a related party.
control is the power to an enterprise's financial and operating policies, and can,
according to the company from operating activities to obtain benefits. Common
control is the contractually agreed an economic activity on the control, only in the
economic activity associated with important financial and operating decisions of
investors to share control of unanimous consent. Significant influence is a company's
financial and operating policies involved in decision-making power does not to
control, or with other parties with joint control of these policies.
(2) related party relationship is linked to the inherent relationship between the parties.
The following parties constitute related party companies: ① the company's parent
company. ② The company's subsidiaries. ⑧ with the same parent company
controlled by other companies. ④ joint control of the enterprise investors. ⑤
significant influence on the corporate investor. ⑥ The company's joint venture. ⑦
The company's joint venture. ⑧ a major investor in the enterprise of individuals and
their close family members. Mainly individual investors, is able to control, joint
control of an enterprise or an enterprise significant influence on individual investors.
⑨ of the enterprise or its parent company, the key management personnel and their
close family members. Key management personnel, is the power and responsible for
planning, command and control activities of the enterprise. With major investors, key
management person or close family members, is in dealing with business transactions
that may affect the individual or by the personal influence of family members. ⑩
The enterprises are mainly individual investors, key management personnel or their
close family members of control, joint control or put emphasis on manpower impact
of other enterprises.
company exists only to the following relations between the parties, does not
constitute a related party companies: ① enterprises have normal dealings with the
financial providers, utilities, government departments and agencies. ② large number
of transactions took place with the business relations of interdependence exist in a
single customer, suppliers, licensors, distributors or agents. ③ with the joint venture
company jointly controlled participant.
controlled by the state and not only with the related party relationship between the
presence of other companies, does not constitute a related party.
related party relationship in the specific criterion used, it shall follow the
requirements of substance over form.
(3) related party transactions between related parties is the transfer of resources,
services or obligations, regardless of whether a price is charged. Types of related party
transactions usually include the following: buying or selling goods; purchase or sale
of goods other than assets; providing or receiving services; security; to provide
funding (loans or equity investment); leasing; agent; research and development
projects transfer; license agreement; on behalf of other companies or by the company
on behalf of debt settlement; key management personnel remuneration.
(4) enterprises, whether related party transactions occur, shall disclose in the notes to
the parent company and the company the following information: ① the name of the
parent company and subsidiaries. Not the ultimate parent company controlling party,
shall disclose the name of the ultimate controlling party. Parent company and ultimate
controlling party shall not provide financial statements of foreign, should also be
disclosed upon the closest parent to provide financial statements of foreign parent
company name. ② the parent and subsidiary nature of the business, its registered
capital (or paid-in capital, share capital) and its changes. ③ parent company of the
enterprise or the business unit's percentage of stake and voting rights.
(5) business and related parties, related party transactions should be disclosed in the
notes to the related party nature of the relationship, transaction type and transaction
elements. Elements of the transaction should at least include: ① the amount of the
transaction. ② the amount of outstanding items, terms and conditions, as well as to
provide or obtain security information. ③ not settled the amount of receivables for
bad debts. ④ pricing policy.
(6) Related party transactions were related parties should be disclosed and the
transaction type. Similar type of related party transactions, without prejudice to the
right readers to understand the financial statements of related party transactions affect
the financial statements of the case, disclosure can be combined.
business is only to provide conclusive evidence in the case to disclosure of related
party transactions are fair trade. / Center&gt;