For example, the company loans an employee money for a travel advance or a company borrows money from another company. Other receivables that arise from loans to outsiders, employees, or stockholders should be shown separately from trade receivables. An everyday example

An arm's length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other. Arm's length transactions assert that both parties act in their own self-interest and are not subject to pressure from the