Related-party notes are a frequent source of late adjustments. The underlying issue is rarely accounting theory; it is incomplete lists of who counts as a related party.
Begin with directors, key management, and entities they control. Update the list when shareholdings change mid-year — a common gap when family companies restructure quietly.
Compile a schedule of balances and transactions: loans, guarantees, management fees, rent, and goods sold at non-market terms. Auditors will sample agreements, not only the ledger totals.
Check whether group guarantees appear in the contingent liability note even when no fee was charged. Silence in the ledger does not remove the disclosure obligation.
Share draft disclosure wording with the auditor before the board pack is printed. Rewriting footnotes after the draft report is issued creates avoidable tension with directors.