Related-party disclosures that survive scrutiny

In closely held Taiwanese companies, related parties often include directors’ relatives, sister companies under common ownership, and landlords who also sit on the board. Listing names without describing the nature of the relationship leaves readers guessing.

Document pricing terms for management fees and goods transfers. If fees are charged as a flat monthly amount, say so. If they are cost-plus, keep the calculation worksheet with the engagement files.

Shareholder loans should show interest rates, repayment terms, and whether amounts are subordinated to bank debt. Silence on terms invites lender questions and expands audit inquiry.

Update the related-party list when ownership changes mid-year. An incomplete list discovered late can push the reporting deadline.

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