Related party disclosures

IAS 24, Related Party Disclosures, shows whether an entity's financial position, profit, or loss has been affected by related parties or by transactions or outstanding balances with such parties.

Related parties can be a person or an entity. A related party transaction is typically the transfer of resources or services between related parties.

The number of related parties or transactions determine whether the solution should be ERP- or spreadsheet-based. If you use an ERP-based solution, the minimum requirement is to identify accounts receivable customers and accounts payable vendors as related parties. Include general ledger accounts if neither accounts receivable nor accounts payable was used to track related party transactions.

How Infor meets this requirement

You can place related companies in the same group, and assign accounts to that group, so you can identify the accounting entries that are specific to the related companies.