ARM'S LENGTH TRANSACTION DefinitionARM'S LENGTH TRANSACTION is a transaction that is conducted as though the parties were unrelated, thereby avoiding any semblance of conflict of interest.Learn new Accounting TermsZERO-RATED denotes goods on which the buyer pays no value-added tax although the ...
An arm’s length transaction, also known as the arm’s length principle (ALP), indicates a transaction between two independent parties in which both parties are acting in their own self-interest. Both buyer and seller are independent, possess equal bargaining power, are not under pressure ordur...
A phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value. Related Q&A What does arms length transaction mean? What is the difference between adjusting entries and correcting entries?
Related to Arm's Length Transaction:Arm's length price ThesaurusAntonymsRelated WordsSynonymsLegend: Switch tonew thesaurus Noun1. arm's length- a distance sufficient to exclude intimacy distance,length- size of the gap between two places; "the distance from New York to Chicago"; "he determined...
Arm’s Lengthhas the meaning ascribed to such term for the purposes of the Income Tax Act (Canada); Arms length transaction” means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. ...
Divestiture Transactionsmeans transactionspursuant towhich Parent shall sell, assign, convey, license or otherwise transfer theDivestiture Assetson orprior to the Closing Datepursuant tobona fidearms' lengthtransaction documents. Sample 1 Related toDivestiture Transactions...
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Arms-length.Transaction-based, with a specific need being fulfilled, and no expectations for further activity. Partnership.Focused relationship with a vendor -- to the exclusion of other vendors or a reduced level of activity with them.
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Arms-length transactions: In fair value accounting, the transaction should be an arms-length transaction between the seller and an independent third party. Fair value accounting would not apply to a business partner or relative, as these relationships can affect the price. ...