E. Related party, related party transactions and fair value of related party transactions 1. A related party is a person or entity that is related to the entity that is preparing its financial statements (the ‘reporting entity’). 2. A person or a close member of that person’s family is related to a reporting entity if that person: a) has control or joint control over the reporting entity; b) has significant influence over the reporting entity; or c) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity. 3. An entity is related to a reporting entity if any of the following conditions apply: a) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); b) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); c) Both entities are joint ventures of the same third party; d) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; e) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity; f) The entity is controlled or jointly controlled by a person identified in paragraph 2; or g) A person identified in paragraph 2(a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). ENG_20120521_CLFFP 2012_en_final.indd 87 21.05.12 17:36 84 4. With reference to paragraphs 1 to 3 above, the following definitions apply: a) Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. They may include that person’s children and spouse or domestic partner, children of that person’s spouse or domestic partner, and dependants of that person or that person’s spouse or domestic partner. b) Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. c) A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. d) Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). e) Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. f) Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies. Significant influence may be gained by share ownership, statute or agreement. g) An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture. In the definition of a related party, an associate includes subsidiaries of the associate and a joint venture includes subsidiaries of the joint venture.
Therefore, for example, an associate's subsidiary and the investor that has significant influence over the associate are related to each other. 5. In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form. The following are not related parties: a) Two entities simply because they have a director or other member of key management personnel in common or because a member of key management personnel of one entity has significant influence over the other entity. b) Two venturers simply because they share joint control over a joint venture. c) Providers of finance, trade unions, public utilities, and departments and agencies of a government that does not control, jointly control or significantly influence the reporting entity, simply by virtue of their normal dealings with an 85 entity (even though they may affect the freedom of action of an entity or participate in its decision-making process). d) A customer, supplier, franchisor, distributor or general agent with whom an entity transacts a significant volume of business, simply by virtue of the resulting economic dependence. 6. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price has been charged (disclosure requirements in respect of related parties and related party transactions are set out in Annex VI). 7. A related party transaction may, or may not, have taken place at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. An arrangement or a transaction is deemed to be ‘not transacted on an arm’s length basis’ if it has been entered into on terms more favourable to either party to the arrangement than would have been obtained if there had been no related party relationship. ENG_20120521_CLFFP 2012_en_final.indd 88 21.05.12 17:36 84 4. With reference to paragraphs 1 to 3 above, the following definitions apply: a) Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. They may include that person’s children and spouse or domestic partner, children of that person’s spouse or domestic partner, and dependants of that person or that person’s spouse or domestic partner. b) Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. c) A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. d) Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). e) Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. f) Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies. Significant influence may be gained by share ownership, statute or agreement. g) An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture. In the definition of a related party, an associate includes subsidiaries of the associate and a joint venture includes subsidiaries of the joint venture. Therefore, for example, an associate's subsidiary and the investor that has significant influence over the associate are related to each other. 5. In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form. The following are not related parties: a) Two entities simply because they have a director or other member of key management personnel in common or because a member of key management personnel of one entity has significant influence over the other entity. b) Two venturers simply because they share joint control over a joint venture. c) Providers of finance, trade unions, public utilities, and departments and agencies of a government that does not control, jointly control or significantly influence the reporting entity, simply by virtue of their normal dealings with an 85 entity (even though they may affect the freedom of action of an entity or participate in its decision-making process). d) A customer, supplier, franchisor, distributor or general agent with whom an entity transacts a significant volume of business, simply by virtue of the resulting economic dependence. 6. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price has been charged (disclosure requirements in respect of related parties and related party transactions are set out in Annex VI). 7. A related party transaction may, or may not, have taken place at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. An arrangement or a transaction is deemed to be ‘not transacted on an arm’s length basis’ if it has been entered into on terms more favourable to either party to the arrangement than would have been obtained if there had been no related party relationship
https://www.uefa.com/MultimediaFiles/Download/Tech/uefaorg/General/01/80/54/10/1805410_DOWNLOAD.pdf
If anyone can be arsed looking at it (I'm working at the minute so will have a read later), I'm pretty sure this is the relevant rule: