Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
If we do not hit our goal we will be forced to close the site.

Current status: https://keepboardsalive.com/

Annual subs are best for most impact. If you are still undecided on going Ad Free - you can also donate using the Paypal Donate option. All contribution helps. Thank you.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.

Connected Party Transaction & RAP Help

  • 02-06-2016 09:16AM
    #1
    Autobotsarego
    Registered Users, Registered Users 2 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?


Advertisement