partes relacionadas

English translation: related parties

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

Spanish term or phrase:	partes relacionadas
English translation:	related parties
Entered by:	Giovanni Rengifo

17:24 Feb 15, 2006

Spanish to English translations [PRO]
Bus/Financial - Finance (general) / financial statements

Spanish term or phrase: partes relacionadas

...contiene información sobre transacciones entre "partes relacionadas", incluyendo ventas, compras, préstamos, transferencias, contratos de arrendamientos, garantías y valores por cobrar o por pagar a "partes relacionadas".

A qué se refieren con "partes relacionadas"?

Giovanni Rengifo KudoZ activity Questions: 571 (9 open) (1 without valid answers) (64 closed without grading) Answers: 4364 Colombia
Local time: 14:42

related parties

Explanation:
x

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Note added at 8 mins (2006-02-15 17:33:04 GMT)
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Accounting and Auditing for Related Parties and Related Party Transactions

Related parties and related party transactions are difficult to audit for several reasons. First, transactions with related parties are not always easily identifiable. Second, although other procedures are ordinarily performed, the auditor relies primarily upon management and principal owners to identify all related parties and related party transactions. Third, such transactions may not be easily tracked by a company's internal control.

Due to this complexity, the proper accounting and auditing of related party transactions requires a sound understanding and extremely careful analysis. This toolkit will assist accountants and auditors in better understanding some of the current issues pertaining to related parties and related party transactions.

http://www.aicpa.org/news/relpty1.htm

Selected response from:

Roberto Hall
Local time: 16:42

Grading comment

Gracias Roberto!
4 KudoZ points were awarded for this answer

Summary of answers provided

5 +5

related parties

Roberto Hall

Related party transactions

Richard Cadena

Discussion entries: 1

Answers

7 mins confidence:

peer agreement (net): +5

related parties

Roberto Hall
Local time: 16:42
Specializes in field
Native speaker of:

English,

Spanish
PRO pts in category: 40

Grading comment

Gracias Roberto!

49 mins confidence:

operaciones con o entre partes relacionadas Related party transactions

Explanation:
Mexican Spanish uses the term "partes relacionadas". This usually refers to a situation relating to a group of companies where there is a parent or holding company and the pertinent subsidiary or affiliated companies. These companies transact all kinds of business with each other such as buying and selling merchandise or products. In another example, one company can sell raw materials and the other can manufacture goods with those raw materials. Often, the parent or holding company lends money to its subsidiaries, and interest has to be paid on them.
Since these companies are connected, there is a temptation to do all of the above things at prices lower than market prices, in the intent to gain some kind of business advantage.
In recent years, the issue of transfer pricing has arisen where accounting firms perform transfer pricing studies to provide assurance that related party transactions are carried out at prices or considerations that would have been used by independent or non-related parties in what are known as arm's length transactions.
Black's Law dictionary defines "arm's-length" as follows:
Of or relating to dealings between two parties who are not related or not on close terms and who are presumed to have roughtly equal bargaining power; not involving a confidential relationship <an arm's-length transaction does not create fiduciary duties between the parties>.
Transfer pricing studies are usually required by law, namely, the income tax law. If a company does not have its transfer pricing study readily available, it can have possible problems with the tax authorities where the company resides.
References: Accounting Trends & Techniques published annually by the AICPA
West's Law Dictionary
Hope this helps
Practically 17 years experience translating for Mexico City based accounting firms, banks, brokerage firms, financial entities in general, Instituto Mexicano de Contadores Públicos, A.C., etc.
Former English teacher at UNAM & IPN. Accredited by the CELE-UNAM.
Resident of Mexico since February 1966

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Note added at 50 mins (2006-02-15 18:15:28 GMT)
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Related parties can involve both local and international companies. Check out Mexico's maquiladora and PITEX programs.

Reference: http://aicpa.org
Reference: http://imcp.org.mx

Richard Cadena
Mexico
Local time: 13:42
Specializes in field
Native speaker of:

English
PRO pts in category: 379

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