# ASC Topic 850: Related Party Disclosures Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/850/) 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): 2026-09-10T02:02:17.059Z to 2026-09-10T02:02:50.151Z Record version: sha256:1eb0921e3dfb7e39ebaaa6cedc91beef61a3cbdfc80734a7fd06374d4193e7c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 850 is a disclosure-only Topic: it tells you what to say about related party transactions and control relationships, but supplies no recognition or measurement rules (those live in other Topics). Under 850-10-50-1, financial statements must disclose material related party transactions — other than compensation arrangements, expense allowances, and similar ordinary-course items — including the nature of the relationship, a description of the transactions (even those given no or nominal accounting recognition, such as free services received per 850-10-05-5), dollar amounts for each income statement period, effects of changes in the method of establishing terms, and amounts due to/from related parties at each balance sheet date; intercompany transactions eliminated in consolidation need not be disclosed in those statements. Two guardrails matter most: receivables from officers, employees, or affiliated entities must be presented separately (850-10-50-2), and arm's-length equivalence may not be represented unless substantiated (850-10-50-5); a significant common ownership or management control relationship must be disclosed even if no transactions occurred (850-10-50-6). Subtopic 850-972 simply applies these requirements to common interest realty associations, flagging insurance, maintenance, or management services provided by board members, officers, or developers (850-972-50-1). Source downloaded (UTC): 2026-09-10T02:02:17.059Z to 2026-09-10T02:02:39.436Z Record version: sha256:267d6371ceac7641f03028607c52f2ec6cb46f6529ff01a4bef3d10d1083cf91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10: Related Party Disclosures — Overall ### Machine-generated study aids ```json { "summary": "ASC 850-10 is a disclosure-only subtopic requiring financial statements to disclose material related party transactions and certain common control relationships. Disclosures cover the nature of the relationship, a description and dollar amounts of transactions for each income statement period, and amounts due to/from related parties at each balance sheet date. It provides no accounting or measurement guidance — recognition and measurement of related party transactions is addressed in other Topics.", "key_points": [ "Financial statements shall disclose material related party transactions other than compensation arrangements, expense allowances, and similar items in the ordinary course of business; disclosures include the nature of the relationship, a description of the transactions (including those with no or nominal amounts ascribed), dollar amounts and effects of changes in the method of establishing terms, amounts due to/from related parties and terms of settlement if not apparent, and the information required by 740-10-50-17 (850-10-50-1).", "Transactions eliminated in consolidation or combination need not be disclosed in those consolidated or combined statements (850-10-50-1).", "Transactions are related party transactions even if given no accounting recognition — e.g., services received from a related party without charge — and must still be disclosed (850-10-05-5).", "Notes or accounts receivable from officers, employees, or affiliated entities must be shown separately and not lumped under a general receivables caption (850-10-50-2).", "Related party transactions cannot be presumed to be at arm's length; representations that terms were equivalent to arm's-length terms may not be made unless substantiated (850-10-50-5).", "If common ownership or management control could cause the reporting entity's results or financial position to differ significantly from those of an autonomous entity, the nature of the control relationship must be disclosed even absent any transactions between the entities (850-10-50-6).", "The Topic applies to all entities and to the separate financial statements of a parent, subsidiary, corporate joint venture, or 50-percent-or-less owned investee (850-10-15-2; 850-10-15-4)." ], "categories": [ "Disclosure", "Presentation", "Financial statement presentation", "Consolidation" ], "audience_level": "introductory", "student_note": "Exam questions typically test that ASC 850 is disclosure-only (it never tells you how to measure a related party transaction) and that transactions with no amounts recorded — like free services or interest-free loans — still require disclosure. A frequent error is asserting that related party terms were \"equivalent to arm's length,\" which is prohibited unless substantiated.", "related_topics": [ "805-50", "810-10", "323-10", "460-10", "740-10", "470-50" ], "key_concepts": [ "related party transactions", "common control relationship", "arm's-length presumption", "affiliates", "principal owners and management", "intra-entity eliminations", "separate financial statements", "receivables from officers and employees" ] } ``` Source downloaded (UTC): 2026-09-10T02:02:17.059Z to 2026-09-10T02:02:17.059Z Record version: sha256:41b6bfff8a46e65cff665c0dd3246bf3aa5246c6894781d3cd64c8c9ebde2aa0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/850/10/#00-status) SEC content: no ##### [850-10-00-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:17.059Z to 2026-09-10T02:02:17.059Z Record version: sha256:4b2eed379218280dd79c56c9e3a716d77a68ffc5f3e49af6cc09580973781a7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AffiliateAmendedMaintenance Update 2018-12 (PDF)09/10/2018
850-10-60-8AmendedMaintenance Update 2017-09 (PDF)05/30/2017
850-10-60-8AmendedAccounting Standards Update No. 2014-0905/28/2014
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. Source downloaded (UTC): 2026-09-10T02:02:21.850Z to 2026-09-10T02:02:21.850Z Record version: sha256:d9d4c964442db1df990f9e4b7bfdeffb37f04b6930e47efc0d94929ca500d145 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/850/10/#10-objectives) SEC content: no ##### [850-10-10-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:21.850Z to 2026-09-10T02:02:21.850Z Record version: sha256:4b67aa832b9e35462d8c534b3f5a260d03bcaf2ff2f18ad66a9a9aed26c3a02a 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.") that would make a difference in decision making shall be disclosed so that users of the financial statements can evaluate their significance. Therefore, this Topic establishes requirements to disclose certain significant related party transactions and [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. Relevant information is omitted if the disclosures required by this Topic are not made. Source downloaded (UTC): 2026-09-10T02:02:23.865Z to 2026-09-10T02:02:23.865Z Record version: sha256:ae6e8ec3787d57d5cc1f2ce200599f0b227044703633079503554103ab6d991b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/850/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [850-10-15-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:23.865Z to 2026-09-10T02:02:23.865Z Record version: sha256:37bc371b5da0f143edbaa9aa1a84f7f47e16cc0c780aaeb3922ad73f23316222 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the Related Party Disclosures Topic. #### Entities ##### [850-10-15-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:23.865Z to 2026-09-10T02:02:23.865Z Record version: sha256:80fb85844af46230c5aa4e0626ef369557c2141fad23ca22d1595c2b271fc3cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Related Party Disclosures Topic applies to all entities. #### Other Considerations ##### [850-10-15-3](https://asc.understandingaccounting.org/asc/850/10/#850-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:23.865Z to 2026-09-10T02:02:23.865Z Record version: sha256:e96527764544d864dae55b05f11632deed8bc51e5a95a1c0f370ee57619b2b0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Related Party Disclosures Topic is limited to disclosures. Accounting and reporting issues concerning certain related party transactions and relationships are addressed in other Topics. ##### [850-10-15-4](https://asc.understandingaccounting.org/asc/850/10/#850-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:23.865Z to 2026-09-10T02:02:23.865Z Record version: sha256:9ff73df4d623e3bcab17da4265826b6b039f33a75c4b38ca25e82436cc833a13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirements of the Related Party Disclosures Topic are applicable to separate financial statements of each or combined groups of each of the following: 1. a A parent entity 2. b A subsidiary 3. c A corporate joint venture 4. d A 50-percent-or-less owned investee. Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:145a08c2d59b81c5c67b166ccbe97541a797badccc0e938f9d73cbe63d67acb2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/850/10/#50-disclosure) SEC content: no #### Related Party Transactions ##### [850-10-50-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:c15085274a88246627a89e5c58345898b168f2ef2eccf2fbeeb94cd6a3b3dc13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: 1. a The nature of the relationship(s) involved 2. b A description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements 3. c The dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period 4. d Amounts due from or to [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.") as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement 5. e The information required by paragraph [740-10-50-17](https://asc.understandingaccounting.org/asc/740/10/#740-10-50-17). ##### [850-10-50-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:1ead24b0b914f3f4ef561922d498701692359e5a58b68a09b19bd3b7f88bf0ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Notes or accounts receivable from officers, employees, or affiliated entities must be shown separately and not included under a general heading such as notes receivable or accounts receivable. ##### [850-10-50-3](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:b1018c94130b12f180fcba57337e4bd2acbf68df9a69514f77be4135ec79f8c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, aggregation of similar transactions by type of related party may be appropriate. Sometimes, the effect of the relationship between the parties may be so pervasive that disclosure of the relationship alone will be sufficient. If necessary to the understanding of the relationship, the name of the related party shall be disclosed. ##### [850-10-50-4](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:1c7fc6b6ad091f67f1c54a156f1004d80978f54d5ff965785c6519ef0900868c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not necessary to duplicate disclosures in a set of separate financial statements that is presented in the financial report of another entity (the primary reporting entity) if those separate financial statements also are consolidated or combined in a complete set of financial statements and both sets of financial statements are presented in the same financial report. #### Disclosures About Arm's-Length Bases of Transactions ##### [850-10-50-5](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:e0a72a4f4fa03a4be367011680155ef7b1a674ed8e79886ad53c96fa639cf7e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. #### Control Relationships ##### [850-10-50-6](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:30.415Z to 2026-09-10T02:02:30.415Z Record version: sha256:27aa4a34c6672c1a90a6926f46b86c9152255fc1e46662c35882546c9489d36a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the reporting entity and one or more other entities are under common ownership or [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.") [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.") and the existence of that control could result in operating results or financial position of the reporting entity significantly different from those that would have been obtained if the entities were autonomous, the nature of the control relationship shall be disclosed even though there are no transactions between the entities. Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:fdaa06db11bd84c581798426ca13e24964ada08bb2d7fcb53d4d247447c04e78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/850/10/#60-relationships) SEC content: no #### Investments—Equity Method and Joint Ventures ##### [850-10-60-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:1ea9a56dd208a8109ccd2ac877d69983eb692188ac568bfb0f34983a017cabe5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosures applicable to the equity method of accounting for investments in common stock, see paragraph [323-10-50-3](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3). #### Guarantees ##### [850-10-60-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:a3721a596a81fa451de3ff7049ebb798e0a548aee99fcf14105840f7f5fbb477 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosures incremental to those required by this Topic for certain guarantees issued to benefit [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."), see paragraph [460-10-50-6](https://asc.understandingaccounting.org/asc/460/10/#460-10-50-6). #### Debt ##### [850-10-60-3](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:2d9a19534cf51d63aeb668e1b10aae25b0223c8daed6ff08c48daee2d24f0117 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on debt extinguishment transactions between related entities that may be in essence capital transactions, see paragraph [470-50-40-2](https://asc.understandingaccounting.org/asc/470/50/#470-50-40-2). #### Equity ##### [850-10-60-4](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:59e56414c397c1a71c1c7291f38f336377d2b15cf27b9d8de6250453cb058858 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of notes received for a sale of the reporting entity's capital stock or a contribution to capital, see Section 505-10-45. #### Business Combinations ##### [850-10-60-4A](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-4A) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:b5847157041b7f713371b4f9807df17b6d01935741b22d0f2b4917b331b358a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosures applicable to certain transactions between entities under common control, see Section 805-50-50. #### Consolidation ##### [850-10-60-5](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:f23667904bca35bc1c9de0b80cc039f361d946b1f346daea1508f4f10f538f37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition by disclosure or otherwise to the effect of intervening events that materially affect the financial position or results of operations when a parent uses, for consolidation purposes, the financial statements of a subsidiary that are as of a fiscal close different from the parent, see paragraph [810-10-45-12](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-12). ##### [850-10-60-6](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:b12fd3c36f019ecf3a9501ea7332da1c366e5ebbe18567d21ac6749463914eca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosure of the consolidation policy in consolidated statements, see paragraph [810-10-50-1](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1). #### Related Party ##### [850-10-60-7](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:fd7012fac35f4c0d607adba2fa7cb2ea9fe7e98008affaa1754bb4f1b55748fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Related Party Disclosures Topic is limited to disclosures. The accounting for certain related party transactions is specified in other Topics. #### Franchisors ##### [850-10-60-8](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:daa5903bd9f23aeb3182f04030c62452443098a90b00dc72f25aea9e70b79e52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on franchisors disclosing certain information about franchisor-owned outlets, see paragraphs [952-10-50-1](https://asc.understandingaccounting.org/asc/952/10/#952-10-50-1) and [952-10-45-1](https://asc.understandingaccounting.org/asc/952/10/#952-10-45-1). #### Limited Liability Entities ##### [850-10-60-9](https://asc.understandingaccounting.org/asc/850/10/#850-10-60-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:32.310Z to 2026-09-10T02:02:32.310Z Record version: sha256:1a86c2f7ca61414d596741a364924de525a943211cfb7bec71d3422d9d382900 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on a limited liability company's presentation of amounts due from members for capital contributions as deductions from members' equity, see paragraph [272-10-45-5](https://asc.understandingaccounting.org/asc/272/10/#272-10-45-5). Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:dc1c9fac1e7443cafd3c17d315bca42825e6effbb7e08dbbf31eabb6825d0a57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/850/10/#sec-45-other-presentation-matters) SEC content: yes #### Presentation of Amounts on Balance Sheet ##### [850-10-S45-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:ef72b9d1571093105cf628055927e669b9018c3e54695f1904e770a7e309daad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.3, for the required separate presentation of receivables due from related parties. ##### [850-10-S45-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:bf7fcb20cfdbba08cbebde67e90f3fea9a86fc3ef96f360b9fbedc3f7edc0aad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.10, for the required separate presentation of securities of related parties. ##### [850-10-S45-3](https://asc.understandingaccounting.org/asc/850/10/#850-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:73b968ec8d7616199a53f7fa83a4703f1ad41a27ef86c347cfb0ffb637d69b15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.11, and Regulation S-X Rule 5-02.23, for disclosure requirements pertaining to indebtedness of related parties. #### Receivables Arising from the Issuance of Capital Stock to Officers or Other Employees ##### [850-10-S45-4](https://asc.understandingaccounting.org/asc/850/10/#850-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:ac8fa517dd829a2e45bb027939b58c19804a0f1d1dc4a4c020cdeadaf715cc07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2), SAB Topic 4.E, for SEC Staff views on the presentation of receivables arising from the issuance of capital stock to officers or other employees. #### Notes or Other Receivables from a Parent or Another Affiliate ##### [850-10-S45-5](https://asc.understandingaccounting.org/asc/850/10/#850-10-S45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:36.948Z to 2026-09-10T02:02:36.948Z Record version: sha256:ee75bb407dce650285b43b1df04ffb274086a5db83b30854f11c88e002b3f261 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3), SAB Topic 4.G, for SEC Staff views on the presentation of notes or other receivable from a parent or another affiliate. Source downloaded (UTC): 2026-09-10T02:02:39.436Z to 2026-09-10T02:02:39.436Z Record version: sha256:179805fc577ac9a208c451229ad81d9b592ce8a72163accef88a3104f91b6d6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/850/10/#sec-50-disclosure) SEC content: yes #### Related Party Transactions ##### [850-10-S50-1](https://asc.understandingaccounting.org/asc/850/10/#850-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:39.436Z to 2026-09-10T02:02:39.436Z Record version: sha256:e0b6eefcc27f9a38a7ce8b0dc4f46545904dc4b740f309e022be10f1e4bbb729 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(k), for required disclosures pertaining to related party transactions. Source downloaded (UTC): 2026-09-10T02:02:42.771Z to 2026-09-10T02:02:50.151Z Record version: sha256:b8b582ed2cba3666d53679727c1ef7f61540d0d569a834972dd82eecc9af8dd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-972: Related Party Disclosures — Real Estate—Common Interest Realty Associations ### Machine-generated study aids ```json { "summary": "This Subtopic applies the general related party disclosure requirements of Topic 850 to common interest realty associations (CIRAs), such as condominium and homeowners' associations. Its core point is that when board members, officers, or developers provide services to the association — for example insurance, maintenance, or management services — those transactions may require related party disclosure under Topic 850. Its scope follows that of Subtopic 972-10 (see 850-972-15-1).", "key_points": [ "The Subtopic addresses the related party disclosure requirements of common interest realty associations (850-972-05-1).", "Scope and scope exceptions are the same as those of the Overall Real Estate—Common Interest Realty Associations Subtopic, Section 972-10-15 (850-972-15-1).", "Insurance, maintenance, or management services provided to a CIRA by individual board members, officers, or developers may require disclosure in conformity with Topic 850 (850-972-50-1).", "The Subtopic adds no measurement or recognition guidance; it only points to the disclosure requirements of Topic 850." ], "categories": [ "Disclosure", "Industry-specific" ], "audience_level": "introductory", "student_note": "Short but testable: the point is that a developer or board member who also sells the association insurance or management services is a related party, so the arrangement must be disclosed. A common misunderstanding is thinking arm's-length pricing eliminates the disclosure — Topic 850 requires disclosure regardless, and cautions against asserting terms were equivalent to arm's-length unless substantiated.", "related_topics": [ "850-10", "972-10", "972-235", "235-10" ], "key_concepts": [ "related party transactions", "common interest realty associations", "board members and officers", "developer services", "management services", "disclosure requirements" ] } ``` Source downloaded (UTC): 2026-09-10T02:02:42.771Z to 2026-09-10T02:02:42.771Z Record version: sha256:ee2cb9822bf7e8914de50748d10bbfcc0d725c6c7cc183d88bcdf350e32ae6ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-972-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/850/972/#05-overview-and-background) SEC content: no ##### [850-972-05-1](https://asc.understandingaccounting.org/asc/850/972/#850-972-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:42.771Z to 2026-09-10T02:02:42.771Z Record version: sha256:356d20ae9f08aa918d8f33f9b0008c8006ce294440b3cb636d89da26e7397c23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the disclosure requirements of common interest realty associations for related party transactions. Source downloaded (UTC): 2026-09-10T02:02:46.793Z to 2026-09-10T02:02:46.793Z Record version: sha256:0388dfb1739b2839e0334519f04c1e8bd1fc2876556082bc9cee8eb64edf6b7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-972-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/850/972/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [850-972-15-1](https://asc.understandingaccounting.org/asc/850/972/#850-972-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:46.793Z to 2026-09-10T02:02:46.793Z Record version: sha256:8b7aa71f6621ae54a70b59150024798a14f30a7f0954580d5252df94d6861e0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 972-10-15. Source downloaded (UTC): 2026-09-10T02:02:50.151Z to 2026-09-10T02:02:50.151Z Record version: sha256:bde6e347470e7870a898c44cf6d9c514c7bba47b25829b405a57cdd0f16f3a87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 850-972-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/850/972/#50-disclosure) SEC content: no ##### [850-972-50-1](https://asc.understandingaccounting.org/asc/850/972/#850-972-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:02:50.151Z to 2026-09-10T02:02:50.151Z Record version: sha256:914653456e81b739072595cb21d36734193663624afddada6b549482d2a7f77c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some individual board members, officers, or developers may provide [common interest realty associations](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute.") with insurance, maintenance, or management services. Such services may require disclosure in conformity with Topic 850.