What is the maximum percentage for any ratio considered a residual transaction without a general disclosure requirement?

For transactions that can be classified as residual, financial regulations typically allow for a threshold to determine whether general disclosures are required. A maximum percentage of 5% is commonly accepted in various regulatory contexts, meaning that if the transaction ratio is at or below this threshold, specific disclosures may not be necessary. This principle is designed to streamline reporting and reduce the burden on entities when the impact of such transactions is deemed minimal.

The rationale behind keeping this threshold low, like 5%, is to ensure that significant transactions are still subject to appropriate oversight and reporting standards, while recognizing that smaller transactions may not have a material impact on an entity's financial position or reporting obligations. By setting the limit at 5%, regulators can balance the need for transparency with the practicality of reporting requirements for smaller transactions.