Which of the following is true about transactions with related parties?

Transactions with related parties must be disclosed to ensure transparency and prevent potential conflicts of interest. Regardless of whether a fixed rate is charged or not, the financial statements should include information about these transactions. This disclosure allows users of the financial statements to understand the potential impact of the transactions on the entity's financial position and performance.

In practice, related party transactions have the potential to influence the decisions made by parties that rely on the financial statements. Therefore, the requirement for disclosure is intended to provide insight into these arrangements, even if they are conducted at a fixed rate that might seem neutral or standard in other contexts. Transparency is a key principle in financial reporting, and this approach helps uphold the integrity of accounting practices.

While it is true that some might think other options could apply, such as believing that market price is necessary for all related party transactions or that insignificant transactions can be ignored, the emphasis on mandatory disclosure underscores the need for proper financial accountability and the potential for conflict of interest that these transactions might create.