55   ASC 850 RELATED-PARTY DISCLOSURES

Perspective and Issues

Subtopic

Scope

Definitions of Terms

Concepts, Rules, and Examples

Disclosures

PERSPECTIVE AND ISSUES

Subtopics

ASC 850 contains one subtopic:

  • ASC 850-10, Overall, which sets forth the disclosure requirements certain significant related party transactions and control relationships.

Scope

ASC 850 applies to all entities.

DEFINITIONS OF TERMS

Source: ASC 850-20

Affiliate. A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity.

Control. The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity through ownership, by contract, or otherwise.

Immediate Family. Family members who might control or influence a principal owner or a member of management, or who might be controlled or influenced by a principal owner or a member of management, because of the family relationship.

Management. Persons who are responsible for achieving the objectives of the entity and who have the authority to establish policies and make decisions by which those objectives are to be pursued. Management normally includes members of the board of directors, the chief executive officer, chief operating officer, vice presidents in charge of principal business functions (such as sales, administration, or finance), and other persons who perform similar policy making functions. Persons without formal titles ...

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