Disclosure of related-party transactions is required because knowledge of related-party transactions,outstanding balances and relationships may affect assessments of an entity's operations by users of financial reports.

Question

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Disclosure of related-party transactions is required to ensure transparency and allow users of financial reports to make informed decisions about an entity's operations, as these transactions and relationships may have an impact on the financial statements.

Disclosure of Related-Party Transactions Is Required Because Knowledge of Related-Party