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What is an arms length transaction between related parties ?

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Question ajoutée par SAI ANIMESH KUMAR N , Senior Manager, Credit , Ahli United Bank
Date de publication: 2016/03/26
YOUSAF  IHSAN
par YOUSAF IHSAN , Business Process Analyst , Air Canada

arms length is to deal as per norms of markets in vogue. Or covenants just like for third unknown party. No preferential treatment or clause is added to the agreement to oblige or give any favour.

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

An arm's length transaction is 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.

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

wait more details from our expert

 

Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

An arm's length transaction is one in which parties to the transaction act independently and have no relationship to each other ensuring that all parties in the deal are acting in their own self interest, are not subject to any pressure or duress.

The concept of an arms length transactions 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.

So  an arm's length transactions  between related parties is a transaction were the parties to the transaction act independently  and in there own self interest and are not subject to any pressure or duress as a result of the relationship between them.

Mohammad Ashi CFA CMA
par Mohammad Ashi CFA CMA , Group Finance Manager , QOAD

waiting for answers from specialties 

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