Related Party Transactions

Question 1

Notes or accounts receivable from officers, employees, or affiliated entities must be

Answer 1

shown separately and not included under a general heading such as notes receivable or accounts receivable

Question 2

FASB ASC 850-10-50-1 requires the following disclosures about related party transactions

Answer 2

The nature of the relationship(s) involved

A description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements

The dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period

Amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement