| 1AC.34 | Where the small entity is a subsidiary, the following information must be given in respect of the parent of the smallest group for which consolidated financial statements are drawn up of which the small entity is a member: |
| (a) | the name of the parent which draws up the consolidated financial statements; |
| (b) | the address of the parent's registered office (whether in or outside the UK); or |
| (c) | if it is unincorporated, the address of its principal place of business. (Schedule 1, paragraph 65) |
| Paragraph 33.5 addresses a similar requirement to paragraph (a). |
| 1AC.35 | Particulars must be given of material transactions the small entity has entered into that have not been concluded under normal market conditions with: |
| (a) | owners holding a participating interest in the small entity; |
| (b) | companies in which the small entity itself has a participating interest; and |
| (c) | the small entity's directors [or members of its governing body]. |
| Particulars must include: |
| (a) | the amount of such transactions; |
| (b) | the nature of the related party relationship; and |
| (c) | other information about the transactions necessary for an understanding of the financial position of the small entity. |
| Information about individual transactions may be aggregated according to their nature, except where separate information is necessary for an understanding of the effects of the related party transactions on the financial position of the small entity. |
| Particulars need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member. (Schedule 1, paragraph 66) |
| Although disclosure is only required of material transactions with the specified related parties that have not been concluded under normal market conditions, small entities disclosing all transactions with such related parties would still be compliant with company law. |
| Transactions with directors, or members of an entity's governing body, include directors' remuneration and dividends paid to directors. |
| Paragraphs 33.9 and 33.14 address similar requirements for all related parties. |
| 1AC.36 | Details of advances and credits granted by the small entity to its directors and guarantees of any kind entered into by the small entity on behalf of its directors must be shown in the notes to the financial statements. |
| The details required of an advance or credit are: |
| (a) | its amount; |
| (b) | an indication of the interest rate; |
| (c) | its main conditions; |
| (d) | any amounts repaid; |
| (e) | any amounts written off; and |
| (f) | any amounts waived. |
| There must also be stated in the notes to the financial statements the totals of amounts stated under (a), (d), (e) and (f). |
| The details required of a guarantee are: |
| (a) | its main terms; |
| (b) | the amount of the maximum liability that may be incurred by the small entity; and |
| (c) | any amount paid and any liability incurred by the small entity for the purpose of fulfilling the guarantee (including any loss incurred by reason of enforcement of the guarantee). |
| There must also be stated in the notes to the financial statements the totals of amounts stated under (b) and (c). (Section 413 of the Act) |
| Paragraph 33.9 addresses similar requirements for all related parties. |
| A small entity that is not a company shall provide this disclosure in relation to members of its governing body. |
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