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Connected Party Transaction & RAP Help

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  • 02-06-2016 9:16am
    #1
    Autobotsarego
    Registered Users Posts: 37 ✭


    Best to use an example for this;

    Here’s example details

    Directors loan debit - €10k (5% of relevant assets)
    Connected trade debtor 1 - €5k (normal course of business debtor) – posted to NL 726.01
    Connected trade debtor 2 - €5k (normal course of business debtor) – posted to NL726.02
    Connected trade debtor 3 - €15k (this not in the normal course of business – it’s a loan/finance amount) – posted to NL725

    My understanding is that debtor 3 needs to be added to the directors loan debit (as it's effectively a loan) when looking at 10% of net assets rule.

    Other 2 just need to be disclosed as RP/connected party transactions (done via connected party box in RAP)

    My problem

    If I tick the normal course of business box in RAP for all 3 balances it’s stating the total % of relevant assets is 5% (just the directors loan). If I don't it’s adding all into the % calc and giving me 22.5%.

    I want to get trade debtor 3 just added to directors loan. I’ve tried moving debtor 3 to different nominals and playing with compliance database but can’t seem to figure it out.

    Do I just need to move debtor 3 to directors loan (861) directly to fix?


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