ASPE - Related Party Transactions
Overview:
Everyone loves a good party. However, some parties can entail complications and ambiguities, especially when it comes to related parties in the field of accounting. Accounting for related party transactions is one of the most complicated areas of applying Accounting Standards for Private Enterprises (ASPE) and it is an area of accounting regularly cited for deficiencies by practice inspection. Now that complexity has increased with changes to ASPE 3856 accounting for retractable and mandatorily redeemable shares and accounting for financial instruments in related party transactions.
This course is designed to address the challenges faced by preparers of ASPE financial statements and practitioners with respect to the recognition, measurement, presentation, and disclosure of related party transactions and balances under ASPE. The course uses case studies, exercises, and examples to illustrate the numerous and complex issues when accounting for related party transactions.
Course Content:
In this course, you will discover the answers to the following queries:
- What is a related party transaction and who are related parties?
- How should related party transactions be measured – at cost, exchange amount or fair value?
- When and how does section 3856, Financial Instruments apply to related party transactions?
- Should related party financial instruments be classified as current or non-current?
- How to assess collectability of related party receivables?
- Should gains and losses on related party transactions recorded in profit and loss or as a capital transaction?
- Disclosure requirements under section 3840 including the terminology dos and don’ts
- Accounting for business combinations among related parties
- Accounting for amalgamations, wind-ups and other combinations involving related parties
Learning Objectives:
Upon enrolling in this course, you will take a journey that enables you to:
- Recognize and measure related party transactions – from simple to complicated transactions including amalgamations and property transfers
- Draft best practice disclosures for related party transactions addressing the concerns of practice inspection
Who Will Benefit:
Professionals involved in the preparation of private enterprise financial statements and practitioners who serve private clients with related party transactions.