BDO Partners organises corporate event: Demystifying the complexity of Related Party Transactions

“A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.” This is the innocuous definition provided in LKAS 24 on ‘Related Party Transactions’. However, the concept of ‘Related Party Transactions’ transcends to issues connected with finance, taxation, legal and other regulatory and statutory obligations. 

BDO Partners, Sri Lanka feels that companies need to look at the big picture and not try to deal with each of these aspects in isolation from one another. Therefore, BDO has decided to organise a seminar on ‘Demystifying the complexity of Related Party Transactions’, bringing together experts from numerous fields to possibly address the many issues connected to Related Party Transactions on 21 May at Hotel Galadari from 8:30 a.m. onwards.

BDO partners, has 56 years of experience in Sri Lanka’s commercial landscape as a top quality professional services provider in audit and assurance, tax services, risk advisory, transaction advisory, BPO and secretarial services. They have a highly qualified, multidisciplinary and experienced team of more than 310 staff led by five partners and supported by an extensive international network of member firms across 151 countries. 

The expert team of BDO has prepared a detailed program aimed at giving the participants a comprehensive insight on Related Party Transactions and how to effectively manage the regulatory and statutory requirements that are connected with such transactions. Nishan Fernando, who heads the Corporate Finance Advisory team at BDO will take you through the financial reporting requirements under LKAS 24. The accounting standard requires certain disclosures to be made in the Financial Statements, to give the stakeholders an opportunity to clearly assess the impact such transactions can have on the financial position of the company.     

Revenue Authorities have also identified the potential for abuse of Related Party Transactions where profits are being shifted between related entities with a view to maximise group tax benefits. The Transfer Pricing Rules re-introduced in 2013 tries to curb this trend and has put in place a robust system to monitor related party transactions. BDO Director Tax Services Sarah Afker will enlighten the audience on the tax implications of intra group financing and transfer pricing implications thereon. She will also take the audience through the salient features of the transfer pricing regulations of Sri Lanka.     

The directors and top management of any company will be held responsible for any violation of the regulatory and statutory obligations when dealing with Related Party Transactions. BDO Secretarial Services Ltd Director Iresha Soysa plans to talk to you on the regulatory requirements in the Code of Best Practices on Related Party Transactions (the implementation of these guidelines which is mandatory for public listed companies from 1 January 2016) the Companies Act and the Colombo Stock Exchange Listing Rules.  

BDO Partners have invited the Regulators to grace the event and also veterans from related sectors for the panel discussion, where the audience will be given the opportunity to direct their questions to the experts. The panellists are Tokyo Cement PLC Chairman Dr. Harsha Cabraal PC, SLAASMB

Director General and Department of Inland Revenue Former Senior Commissioner 

Gamini Wijesinghe, Securities and Exchange Commission of Sri Lanka Director Corporate Affairs Harshana Suriyaperuma and BDO Partners Partner – Technical and Audit Tishan Subasinghe. Daily FT Editor Nisthar Cassim will be the moderator for the panel discussion.