User Roles AdminStaff contributor ✗External contributor ✗Pulse user 

The [Disclosure] Related party transactions template captures material transactions the company has entered into with related parties on terms that are not at arm's length, split into four categories. It also covers a set of director-specific disclosures: advances, guarantees, credit transactions and key management compensation. Together these produce the related party transactions note required in the accounts.

Table of contents 

When should I use this template?

Use it whenever the company has had related party transactions that need disclosing and you are not preparing this note as part of the wider Accounts Production disclosure set. This template gives you a standalone version of the same note for working-papers-only assignments.

Before you start

Identify which of the four related-party categories apply. Then gather the detail of any transactions with directors (or, for an LLP, members of its governing body) that need the additional advances, guarantees, credit transaction or key management compensation disclosures.

Background

Companies must disclose material transactions with related parties that have not been made on normal market terms. This template exists to capture and evidence that disclosure.

Steps

  1. Choose which related-party categories apply. There are four checkboxes: owners holding a participating interest in the entity; companies in which the entity itself has a participating interest; the entity's directors (or members of its governing body); and other related party transactions. Ticking a category reveals its section.
  2. Transaction line items. For each enabled category, add as many rows as needed: a description and a current-period value, plus a comparative-period value where a comparative period exists.
  3. Category-level comment. A free-text box under each enabled category, for anything further needed to understand the effect of those transactions on the financial position.
  4. Directors' category - Advances. A separate toggle. When switched on, add a row per advance with its description, date, amount, interest rate, main conditions, amounts repaid, amount written off and amounts waived. Each saved row generates an editable narrative sentence summarising it, and a combined total sentence appears automatically once there is more than one row.
  5. Directors' category - Guarantees. A separate toggle. When switched on, add a row per guarantee with its main terms, maximum liability, amount paid and liability incurred. Each row generates an editable narrative sentence, with a combined total once there is more than one row.
  6. Directors' category - Credit transactions. A separate toggle revealing a single free-text box, pre-filled with a fill-in-the-blank template sentence about goods or services supplied to a director (or member) at favourable rates and any amount since repaid. Edit the blanks to match the actual transaction.
  7. Directors' category - Key management compensation. A separate toggle. When switched on and an amount is entered for either period, a table appears showing the description (which defaults to Key management compensation), the current-period total and, where applicable, the comparative-period total, plus an optional additional note.
  8. General comment. A final free-text box, shown once you have entered anything above, for any additional information needed to understand the effect of related party transactions generally.

Unlike the equivalent note inside Accounts Production, this template does not offer a choice between the FRS 102 and FRS 102 1A disclosure formats. It always presents the note in one consistent layout.

What flows through to the rest of the accounts/workflow?

This is a standalone disclosure note. It does not pull figures in from other templates, and its content is used directly as the related party transactions note in the accounts rather than being exported as a result for other templates to consume.

What rolls forward next year?

Every toggle, transaction row, generated narrative override and comment carries forward as you left it. Review and update each one for the new period rather than assuming it refreshes automatically: nothing here is recalculated from the trial balance.

Where the data comes from

  • Entirely manual entry. Every category toggle, transaction row, amount and narrative is typed in directly, and nothing is pulled from the trial balance.

Frequently asked questions

Why don't I see the FRS 102 / FRS 102 1A format dropdown that other disclosure notes have?

This standalone template always uses one consistent format and does not offer that choice. The dropdown is only relevant to the equivalent note when used inside Accounts Production.

Why did the wording change to mention "members of its governing body"?

The directors category is worded to also cover members of a governing body, which is relevant for LLPs for example, so the same category applies regardless of legal form.

Why does a total sentence appear under Advances/Guarantees but not always?

The combined total narrative only generates once you have entered more than one row in that section.

Because nothing on this template is recalculated from the trial balance, the fastest way to work it each year is to open every toggle you switched on last period and check the narrative sentences still describe this period's transactions before you sign the note off.