arm's length transaction

简明释义

正常交易;

英英释义

例句

1.To comply with regulatory requirements, the merger was structured as an arm's length transaction.

为了遵守监管要求，合并被结构为一个公允交易。

2.The real estate deal was considered an arm's length transaction since both parties were independent.

由于双方都是独立的，这笔房地产交易被视为一个公允交易。

3.The company ensured that the sale of its assets was an arm's length transaction to avoid any conflict of interest.

公司确保其资产的出售是一个公允交易，以避免任何利益冲突。

4.Investors prefer arm's length transactions because they provide a clear and fair valuation of assets.

投资者更喜欢公允交易，因为它们提供了资产的清晰和公正的估值。

5.During the audit, the accountant verified that all related party transactions were conducted as arm's length transactions.

在审计过程中，会计师验证所有关联方交易都是作为公允交易进行的。

作文

In the world of business and finance, the concept of an arm's length transaction is fundamental to ensuring fairness and transparency in dealings between parties. An arm's length transaction refers to a deal or agreement made by two parties who are independent and on equal footing, meaning that neither party has any influence over the other. This term is often used in legal and financial contexts to describe transactions that are conducted in a manner that avoids conflicts of interest and ensures that both parties act in their own self-interest.The importance of arm's length transactions cannot be overstated. In a typical business environment, companies engage in various transactions, such as buying goods, selling services, or entering into partnerships. When these transactions occur at an arm's length, it means that they are conducted without any undue pressure or coercion from either side. This helps to establish trust and credibility in the marketplace, as both parties can feel confident that they are receiving a fair deal.For instance, consider a scenario where a company is looking to purchase raw materials from a supplier. If the transaction is conducted at an arm's length, the supplier will set prices based on market conditions, and the buyer will make a decision based solely on the quality and price of the materials offered. However, if there is a personal relationship between the buyer and the supplier, this could lead to preferential treatment or unfair pricing, which undermines the integrity of the transaction.Moreover, arm's length transactions are crucial for regulatory compliance. Many jurisdictions have laws in place that require certain transactions, especially those involving related parties, to be conducted at an arm's length to prevent fraud and abuse. For example, tax authorities often scrutinize transactions between related entities to ensure that they are priced fairly and do not result in tax evasion. By adhering to the principle of arm's length transactions, businesses can demonstrate their commitment to ethical practices and maintain their reputations.In addition to legal and ethical considerations, arm's length transactions also play a significant role in financial reporting. Companies are required to disclose related-party transactions in their financial statements, and these disclosures must reflect the terms that would have been agreed upon by unrelated parties. This ensures that investors and stakeholders have a clear understanding of the company's financial position and the nature of its dealings.To illustrate the benefits of arm's length transactions, let’s take a look at a real-world example. A multinational corporation may have subsidiaries in various countries. If one subsidiary sells products to another at inflated prices due to their relationship, it can distort the financial performance of both entities. However, if these transactions are conducted at an arm's length, it allows for accurate financial reporting and better decision-making by management and investors alike.In conclusion, the principle of arm's length transactions is essential in fostering a fair and transparent business environment. It safeguards against conflicts of interest, ensures compliance with regulations, and enhances the reliability of financial reporting. As businesses continue to navigate complex relationships and transactions, understanding and implementing the concept of arm's length will be crucial for maintaining integrity and trust in the marketplace.

在商业和金融的世界中，臂长交易的概念对于确保各方之间的公平和透明至关重要。臂长交易是指两个独立且处于平等地位的当事方之间达成的交易或协议，这意味着任何一方都对另一方没有影响。这个术语通常用于法律和金融背景中，用来描述以避免利益冲突并确保双方各自为自己利益行事的方式进行的交易。臂长交易的重要性不容小觑。在典型的商业环境中，公司进行各种交易，例如购买商品、销售服务或建立合作关系。当这些交易在臂长下进行时，意味着它们是在没有任何一方施加不当压力或强迫的情况下进行的。这有助于在市场中建立信任和信誉，因为双方都可以确信他们正在获得公平的交易。例如，考虑一个场景，一家公司希望从供应商那里购买原材料。如果交易是在臂长下进行，供应商将根据市场条件设定价格，而买方将仅根据所提供材料的质量和价格做出决定。然而，如果买方和供应商之间存在个人关系，这可能导致优待或不公平定价，从而破坏交易的完整性。此外，臂长交易对合规性也至关重要。许多法域都有法律规定，要求某些交易，特别是涉及相关方的交易，必须在臂长下进行，以防止欺诈和滥用。例如，税务机关通常会审查相关实体之间的交易，以确保它们的定价是公平的，不会导致逃税。通过遵循臂长交易的原则，企业可以证明其对伦理实践的承诺，并维护其声誉。除了法律和伦理考虑外，臂长交易在财务报告中也发挥着重要作用。公司需要在其财务报表中披露相关方交易，而这些披露必须反映出无关方之间可能达成的条款。这确保投资者和利益相关者清晰了解公司的财务状况及其交易性质。为了说明臂长交易的好处，让我们看一个现实世界的例子。一家跨国公司可能在多个国家拥有子公司。如果一个子公司以夸大的价格向另一个子公司销售产品，可能会扭曲两个实体的财务表现。然而，如果这些交易是在臂长下进行，它允许准确的财务报告，并为管理层和投资者提供更好的决策依据。总之，臂长交易原则在促进公平和透明的商业环境中至关重要。它保护了利益冲突，确保了合规性，并增强了财务报告的可靠性。随着企业继续应对复杂的关系和交易，理解和实施臂长的概念对于维护市场中的诚信和信任至关重要。