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If a loss contingency is remote, but the relationship is with a related party, does the loss contingency need to be disclosed?

Yes. Under U.S. GAAP, if the loss contingency is remote and immaterial, then a company is not required to disclose the item in the financial statements.

However, since the loss contingency is with a related party, the item does need to be disclosed. U.S. GAAP requires all transactions with related parties to be disclosed, regardless of materiality.

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