What must be disclosed if related parties hold more than 10% interest in transactions?

Disclosing the identity of the related parties is crucial because it helps users of the financial statements understand the nature of the relationships that may influence the transactions reported. When related parties hold greater than 10% interest in transactions, the financial statements may be affected by factors such as potential conflicts of interest or lack of objectivity in the accounting practices.

Identifying these related parties enables stakeholders, such as investors and creditors, to assess the implications of the transactions on the overall financial position and performance of the entity. It provides transparency, ensuring that users can evaluate any risks or biases that may arise from those relationships.

While other aspects like financial performance or transaction counts could provide context for understanding the relationships, the primary concern rests with the identity disclosure, as it directly relates to transparency and accountability in financial reporting.