Disclosure—Related party summary
Transactions with related parties must be properly identified and disclosed in the financial statements. A related party summary in the general ledger facilitates the identification of relevant transactions and balances for analysis and disclosure.
The objective of the test is to generate a summary that includes all transactions associated with related parties in the general ledger, detailing the affected accounts, amounts, nature of the transactions, and any relevant balances.
Fields used for analysis
Reference columns
Unique columns that create a unique transaction ID, such as entry_id for the General ledger. These columns will not be part of the result but may be needed in order to achieve the result.
Core columns
Numeric column - used to create the summary (could be disaggregated between debits and credits).
Related party column - used to summarize transactions involving related parties.
Parameters
None needed as this is a specific test and does not have any user input.
Output
The output of this test is a summary that presents related party transactions in the general ledger. This summary shows the affected accounts and the aggregated amounts for each related party.
Example
| Transaction ID | Date | Related party | Account | Amount | Transaction type |
|---|---|---|---|---|---|
| 001 | 2024-01-15 | ABC Corporation | Accounts Receivable | 15,000 | Accounts Receivable |
| 002 | 2024-02-10 | XYZ Holdings | Notes Receivable | 30,000 | Notes Receivable |
| 003 | 2024-03-05 | ABC Corporation | Accounts Receivable | 8,000 | Accounts Receivable |
| 004 | 2024-04-12 | XYZ Holdings | Accounts Receivable | 5,000 | Accounts Receivable |
| 005 | 2024-05-20 | LMN Group | Accounts Payable | 10,000 | Accounts Payable |
| 006 | 2024-06-15 | ABC Corporation | Notes Receivable | 20,000 | Notes Receivable |
| 007 | 2024-07-10 | XYZ Holdings | Accounts Receivable | 12,000 | Accounts Receivable |
Summary by related party
ABC Corporation
-
Accounts Receivable: $23,000
-
Notes Receivable: $20,000
XYZ Holdings
-
Accounts Receivable: $17,000
-
Notes Receivable: $30,000
LMN Group
-
Accounts Payable: $10,000
Technical specification
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Identify all transactions related to specific parties in the General ledger.
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Aggregate the transaction amounts for each related party.