Sales of assets from the investor to an associate is an example of a **related party transaction**. This term refers to transactions between two parties that have a pre-existing relationship such as between an investor (who has significant influence or control) and an associate (an entity over which the investor has significant influence).
In financial reporting, related party transactions must be disclosed because they may not be conducted on the same terms as transactions with independent third parties. The aim is to provide transparency and ensure that such transactions are fair and in the interest of all stakeholders.
Sales of assets from the investor to an associate is an example of ..........
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