6 February 2026
Related-party disclosures that survive scrutiny
Related-party footnotes fail when identification is incomplete. Family shareholdings, sister companies under a common overseas parent, and key management’s side entities often sit outside the general ledger’s counterparty list.
Start with ownership maps
Ask for an updated group chart before planning, including dormant entities and recent share transfers. Interview the managing director separately from the controller; informal loans and guarantees sometimes live only in personal knowledge.
Pricing support
Even when amounts are small, document how transfer prices or rentals were set. A one-page memo with comparable quotes or board approval minutes is stronger evidence than a verbal assurance mid-fieldwork.
Disclosure tone
Footnotes should name the nature of the relationship and the outstanding balances at period end. Vague phrases about “transactions with affiliates” invite follow-up questions from lenders and from the next year’s auditor.