arm's length transaction definition
A phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value.
A phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.