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How can we define "Arms's Length Transactions" ? What are the consequences of transaction at arm's length ?

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تاريخ النشر: 2014/09/19
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

“Arms length transaction” means:

An arms length transaction involves two independent parties and each is attempting to get the best deal possible.. In an arms length transaction, the seller of an Asset attempts to get as much as possible for the Asset from an independent person who is striving to get the it for the lowest possible price. Both parties probably know the retail value and the wholesale value of the Asset and both want the best price:

The seller is attempting to sell the Asset at a price that is close to the retail value

The buyer is attempting to buy the Asset for the wholesale value or less. 

Consequence : The purchase price/selling price cannot reflect the real value/market value--may tend to revaluation.   

FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

Arm's Length Transaction

A transaction in which the buyers and sellers of a product act independently and have no relationship to each other.

 The concept of an arm's length transaction is to ensure that both parties in the deal are acting in their own self interest and are not subject to any pressure or duress from the other party

مستخدم محذوف‎
من قبل مستخدم محذوف‎

I agree with Professor

VENKITARAMAN KRISHNA

 

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

Thank you for the invitation did not understand the question I can not answer

المزيد من الأسئلة المماثلة