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Affiliated companies are entities that are connected through ownership, typically where one company holds a significant stake in another, allowing for influence or control. Related parties encompass a broader category, including individuals or entities that have a close relationship with a company, such as family members of key management, directors, or entities under common control. Transactions with affiliated companies and related parties must be disclosed in financial statements due to potential conflicts of interest and the need for transparency. Their relationships can affect financial performance and governance.

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1mo ago

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