// definition
Related party
A relationship requiring disclosure and oversight
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Short definition
A person or entity connected to a company through control, significant influence, common management or another relationship defined by accounting standards. A related-party transaction is not improper by itself, but it requires disclosure and governance suited to the risk of conflicts of interest.
risk atlas
Knowledge map
Intuition
The label identifies a relationship, not a wrongdoing. The analytical question is whether pricing, approval and disclosure withstand the conflict.
Related analyses
- The balance sheet Apollo does not consolidateCapital, board seats, fees and related insurance contracts.
Primary sources
- IFRS FoundationIAS 24 definitions and disclosure requirements.
- US Securities and Exchange CommissionIssuer disclosures of related-party transactions.