IAS 24 - RPT

• Related party transaction


  The transfer of resources, services or obligations between related parties, regardless of whether a price is charged
• Related party


  A person or entity that is related to the entity preparing its financial statements (the reporting entity)
• A person is related to a reporting entity if that person:

  • Has control or joint control of the reporting entity
  • Has significant influence over the reporting entity
  • Is a member of the key management personnel of the reporting entity or of a parent of the reporting entity
• Close members of family include:

  • That person's children and spouse or domestic partner
  • Children of that person's spouse or domestic partner
  • Dependents of that person or that person's spouse or domestic partner
• Key management personnel


  Those with authority and responsibility for planning, directing and controlling the activities of the entity, including any director (whether executive or otherwise) of that entity
• Disclosures

  • Parent and subsidiary relationships
  • Key management personnel
  • Transactions and Outstanding balances
• Parents and Subsidiary - Disclosures

  IAS 24 requires that relationships between parents and subsidiaries should always be disclosed. The name of the parent, if different, the ultimate controlling party should be given
• Key management personnel - DisclosuresTotal compensation granted to key management personnel should be disclosed and broken down into the following categories:
• Key management personnel - Disclosures

  Total compensation granted to key management personnel should be disclosed and broken down into the following categories:

  • short term benefits
  • pension benefits
  • termination benefits
  • share based payment schemes
• Disclosure of transaction and outstanding balances

  If there have been transactions between related parties and/or if there are balances outstanding between the parties the following should be disclosed:

  • the nature of the related party relationship
  • a description of the transaction
  • the amount of the transaction
  • details and amount of the outstanding balances
  • allowance for receivable in respect of the outstanding balances
  • irrecoverable debt expense in respect of the outstanding balances
• Disclosure of transaction and outstanding balances

  IAS 24 specifies that an entity may only disclose that related party transaction were made on terms equivalent to those that prevail in arms length transactions if such terms can be substantiated