Welcome to free paper download website

Information disclosure of listed companies related party transactions

Author: ZuoNiHong From: www.yourpaper.net Posted: 2010-06-15 02:24:58 Read:
Abstract: The related party transactions is an economic phenomenon that can not be avoided in the economic life. With China's socialist market economic system, and comprehensively promote the development of capital markets, the related party transactions of listed companies, disclosure of company information, corporate actions, the impact of corporate governance structure and more profound problem of information disclosure has caused the majority of investors attention. While the related party transactions understandable, but the negative impact of improper related party transactions, you must pay attention to.
Keywords: Related party relationships; transactions; Information Disclosure

A related party relationships and related party transactions defined

1.1 related party transactions generated
Related party transactions associated with the rise of enterprise groups, multinational corporations, parent companies and subsidiaries of the system and the total branch system is widely used when a particular transaction. With the increasingly fierce market competition, enterprise groups, the trend is more obvious, while a large number of related party transactions, new transactions are endless. Many of our listed companies are state-owned enterprise restructuring, original affiliation is difficult to cut, coupled by the IPO quota restrictions listed on the company's size is getting smaller and smaller shares of the company as the Group's operating divisions or even just a production line there, and the supply of raw materials, production and marketing chain attached to the Group, resulting related party transactions will be inevitable. May make a small number of large shareholders in a good position due to the occurrence of the related party transactions, of which the most important is the information advantage, so despite the related party transactions long time, but it was not until 1997, was included in the regulatory areas, various related party transactions have yet to be disclosed specification.

1.2 Related party relationships and related party transactions defined principle
Related party relationships and transactions defined principles of substance over form principle. The type of related parties is complex and diverse, as compared to increase the difficulty of the definition of a related party. To determine whether a party is a related party of the body of the report, the key should concern the substance of the relationship. And not just see the external form of the relationship. Only one of the parties be able to control or exercise significant influence over the other financial and operating policies formulated or they are subject to control or significant influence of the same party, one of the parties is difficult full pursuit of its independent will and maintain their own independent economic interests, the two sides before inter-related parties. If you only see the form of the relationship, mapping lead to errors of judgment.

1.3 Identification of related party relationships
Already reached a consensus on the disclosure of related party relationships and transactions, domestic and international accounting theory and practical circles. For example, the International Accounting Standards Board announced in July 1984, the International Accounting Standards (SFAS) No. 24, "Related Party Disclosures" in March 1982, the Financial Accounting Standards Board issued SFAS No. 57 associated reveals . " China in May 1997 by the Ministry of Finance released the "Accounting Standards for Enterprises - disclosure of related party relationships and transactions", this release of the guidelines for the specifications listed companies related party relationships and transactions in the notes to the financial statements in full disclosure, played a positive role to curb the unfair market transactions between related parties. But with the normative system of continuous improvement of information disclosure of listed companies in China, this criterion is gradually showing some limitations. To this end, the Ministry of Finance in the summary of the disclosure of related party relationships and transactions standards implementation experience, learn from the international accounting standards and reasonable content based on the "Accounting Standards for Business Enterprises No. 36 - Related Party Disclosures" was published in February 2006.
1.3.1 Comparison of the old and new guidelines
The new release of the related party disclosure standards, compared with the original guidelines, expanding the scope of related parties, specific performance:
(1) the criteria of the related parties. The original guidelines provides that: "in corporate financial and operating decisions, if one party has the ability to direct or indirect control, jointly control the other party or exercise significant influence over the other party, the guidelines will be regarded as related parties; Where two or more parties are subject The guidelines will also be regarded as related parties, party control, the new standard requires: "party control, jointly control the other party or exercise significant influence, as well as the two parties or more than two parties are subject to common control, joint control or significant influence from the related parties. contrast can be seen. Is consistent with the provisions of the longitudinal related party relationships, horizontal related party relationships there is a difference.
(2) by individuals and other businesses related party relationships. The original Guidelines "listed associated Prescriptions stated as:" direct control by the principal individual investors, key management personnel or their close family members of other enterprises ", the new guidelines is expressed as follows:" The major investor in individuals, key management personnel or their relationship close family members control, joint control or significant influence over the other companies. " Includes not only the direct control of individual enterprise related parties other enterprises, including joint control and significant influence over the enterprise.
(3) the scope of the key management personnel. The the original guidelines so-called key management personnel, refers only to the key management personnel of the enterprise; new standards will be the key management personnel of the parent company of the enterprise is also included in the scope of related parties. In this way, the related parties compared with the original guidelines, an increase of key management personnel of the parent company, the key management personnel of the parent company's control or joint control or significant influence over other enterprises, close to the key management personnel of the parent family members control or joint control or significant influence over the other enterprise.
1.3.2 International Comparison of related party relationships
(1) The International Accounting Standards Board announced in July 1984, the ISA24 "Related Party Disclosures" to provisions related parties include: directly or indirectly by one or more of the middle control reporting enterprise, or reporting enterprise control and report the enterprises jointly controlled companies (including holding companies, subsidiaries and other subsidiaries); associates; direct or indirect ownership of voting shares of the reporting enterprise, the enterprise has a significant impact on those individuals and their close family members key management personnel, that is the right and responsibility to carry out the planned command and control of the activities of the reporting enterprise (including company directors and officers, as well as close family members with these people); directly by the preceding two paragraphs staff or indirectly have significant voting, or such personnel to be able to exercise significant influence over them enterprises (including enterprises owned by directors or major shareholders of the reporting enterprise and enterprises have a common key management personnel of the reporting enterprise).
(2) was released in March 1982 by the Accounting Standards Board SFAS NO.57 "association reveals" specified in the following cases are related parties: an enterprise under the equity method of accounting investee; for Services Trust Fund of the interests of employees, such as pension profit sharing these authorities entrusted with the management of the Trust Fund; enterprise owners; management authorities; enterprise owners and management authorities, immediate family members.
(3) China's Ministry of Finance in February 2006, the latest release of "Enterprise Accounting Standards No. 36 - Related party disclosures" in the provisions related parties, including: the parent company of the enterprise; subsidiary of the enterprise; with Hai enterprises by the same other enterprises controlled by the parent company; implementation of the enterprise the investors jointly controlled; investors to exert significant influence of the enterprise; joint venture enterprise; associates of the enterprise; principal individual investors of the enterprise and their close family members (principal individual investors to be able to control, jointly control or significant influence over an enterprise, individual investors); key management personnel and their close family members of the enterprise or its parent (the key management personnel who have the authority and responsibility for planning, directing and controlling the activities of the staff and the principal individual investors or key management personnel, close family members, may affect the individual or by the individual in dealing with business transactions family members); the principal individual investors, key management personnel or their close family members of the control, joint control or significant influence over the other enterprise.
 1/3    1 2 3 Next Last
Please consciously abide by Internet-related policies and regulations.
Tips: Log in to comment, the user name to enter comments directly from your personal space, so that more friends to meet you.

Company Research latest papers

Sponsored Links

Company Research papers Ranking

Latest free papers

Sponsored Links

Top