Doctor of Economics, Head of the Economics and Business Finance Department of Kyiv National University of Trade and Economics
Postgraduate Student of the Accounting and Taxation Department of Kyiv National University of Trade and Economics
THE CRITERIA OF RELATED PERSONS IN THE ACCOUNTING OF CONTROLLED TRANSACTIONS
Background.The concept of related persons for the theory of accounting is not new, but now, with the purpose of accounting for controlled operations, it has a new meaning, and the list of related persons has become more extensive and detailed. Therefore, there is a need to consider the scientific approaches to the identification of operations with related parties.
The aim of the article is the study of the criteria for identification of related persons in the account of controlled operations.
Results.The definition of related persons in Ukrainian legislation and international practice is considered. The criteria for identification of related persons from the list of counteragents are: control over a legal person through ownership of a portion of corporate rights directly or through other companies; full or partial coincidence of executive or supervisory boards of enterprises; influence through family ties and relationships; amount of all loans, financial assistance received from one legal entity (individual) or under their guarantee. Calculations for the criteria application have been considered.
Conclusion.The study of the concept of "related parties", general criteria for determining the connection between individuals and criteria approved by the Tax Code of Ukraine, made it possible to determine as precisely as possible the list of related persons for the account of controlled operations. This list is essential in the definition of transactions that are recognized as controllable and helps to avoid situations with ambiguous interpretation of the results of financial and economic activities associated with pricing.
Keywords:transfer price, related persons, associated persons, corporate rights, controlled transactions.
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