What are some examples that indicate a related party transaction exists?
On the surface, related party transactions are not treated any different from an accounting perspective, however, you will likely need to look closely at the specific terms. In a related party transaction, there are often terms that are off market, meaning, the terms are very different than what the company would receive if they went to the open market.
The image below lists out some common scenarios that may indicate the transaction is with a related party:
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