An 'arm's length' transaction in accounting refers to a deal made by unrelated parties, each acting in their own best interest to ensure fair market value is upheld. Understanding and ensuring such transactions are vital for transparent financial statements.
Close family refers to the family members of an individual or members of the individual's household who are expected to influence or be influenced by that person in their dealings, potentially leading to related party transactions.
Related Party Transactions involve the transfer of assets, liabilities, or the performance of services between related parties, requiring specific disclosures and governance to ensure transparency and fairness.
