Monday 8 December 2008

UK: ASB updates FRS8 - new definition of related party

The Accounting Standards Board has today published an amendment to Financial Reporting Standard 8 ("Related Party Transactions") which changes the definition of related party, following the introduction of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (see Section 72 of Schedule 1, where related party is defined by reference to international accounting standards). Further background information is available in the amendment.

NB: Chapter 11 of the Listing Rules contains provisions concerning related party transactions and Setion 177 of the Companies Act 2006 imposes on directors a duty of disclosure with regard to certain interests they may have in proposed transactions or arrangements with the company.

No comments: