# ASC 850-10-05: Related Party Disclosures — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/850/10/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:5fd580b0aa890214f9a32f26821fed18b270f3608bb9d73c67ce7583848b6ee5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/850/10/#05-overview-and-background) SEC content: no ##### [850-10-05-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:10e8017ad4169e99d07cb676045c4dfbef623abd00aa6bf9c12c9841d6b89995 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Related Party Disclosures Topic provides disclosure requirements for related party transactions and certain common [control](https://asc.understandingaccounting.org/glossary/c/#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.") relationships. Accounting and reporting issues concerning certain related party transactions and relationships are addressed in other Topics. ##### [850-10-05-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:99819c7ba1050bcffe1b3410b23d486c2dc8a77d09f2dffe72dfe89b8f637136 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about transactions with [related parties](https://asc.understandingaccounting.org/glossary/r/#related-parties "Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.") is useful in comparing an entity's results of operations and financial position with those of prior periods and with those of other entities. It helps users of financial statements to detect and explain possible differences. ##### [850-10-05-3](https://asc.understandingaccounting.org/asc/850/10/#850-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:6371b8f46836373a1b04293582ec9f252808b4f9f4589237e05d0e878162c5b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of related party transactions include those between: 1. a A parent entity and its subsidiaries 2. b Subsidiaries of a common parent 3. c An entity and trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's [management](https://asc.understandingaccounting.org/glossary/m/#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 also may be members of management.") 4. d An entity and its [principal owners](https://asc.understandingaccounting.org/glossary/p/#principal-owners "Owners of record or known beneficial owners of more than 10 percent of the voting interests of the entity."), management, or members of their [immediate families](https://asc.understandingaccounting.org/glossary/i/#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.") 5. e [Affiliates](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control."). ##### [850-10-05-4](https://asc.understandingaccounting.org/asc/850/10/#850-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:4b808621ba1495f70bf8ac2e72bd3df23be207db7244638508361088a1487d76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transactions between related parties commonly occur in the normal course of business. Examples of common transactions with related parties are: 1. a Sales, purchases, and transfers of real and personal property 2. b Services received or furnished, such as accounting, management, engineering, and legal services 3. c Use of property and equipment by lease or otherwise 4. d Borrowings, lendings, and guarantees 5. e Maintenance of compensating bank balances for the benefit of a related party 6. f Intra-entity billings based on allocations of common costs 7. g Filings of consolidated tax returns. ##### [850-10-05-5](https://asc.understandingaccounting.org/asc/850/10/#850-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:18.728Z to 2026-09-10T02:02:18.728Z Record version: sha256:b878a44097046eb175fa295c4428ef55a820ecf1b06be719b689f1c0725d4ca4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transactions between related parties are considered to be related party transactions even though they may not be given accounting recognition. For example, an entity may receive services from a related party without charge and not record receipt of the services. While not providing accounting or measurement guidance for such transactions, this Topic requires their disclosure nonetheless.