related party
[/rɪˈleɪtɪd ˈpɑːrti/]
nounpl: related parties
parte relacionada
1. A person or entity that has a relationship with another person or entity, typically in a business or financial context, such as family members, affiliated companies, or entities under common control
The company must disclose all transactions with related parties in its financial statements.
A empresa deve divulgar todas as transações com partes relacionadas em suas demonstrações financeiras.
2. In accounting and auditing, individuals or entities that can influence or be influenced by the reporting entity
The auditor identified a related party transaction that required special attention.
O auditor identificou uma transação com parte relacionada que exigia atenção especial.
3. In corporate governance, entities such as subsidiaries, associates, or key management personnel connected to a company
The board approved the contract after determining the counterparty was not a related party.
O conselho aprovou o contrato após determinar que a contraparte não era uma parte relacionada.
This is a specialized term used primarily in accounting, finance, and corporate governance contexts. In Brazil, it is essential for compliance with IFRS (International Financial Reporting Standards) and CVM (Comissão de Valores Mobiliários) regulations. Companies listed on the B3 (São Paulo Stock Exchange) must strictly disclose related party transactions. The term is equally important in the USA for SEC compliance and is central to corporate transparency and fraud prevention.
Related Idioms & Phrases
related party transaction
related party at arm's length
identifying related parties
disclosure of related parties
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