IFRS Standard: IAS 24 Related Party Disclosures

Objective

1 The objective of this Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties.

Scope

2 This Standard shall be applied in:

1. identifying related party relationships and transactions;
2. identifying outstanding balances, including commitments, between an entity and its related parties;

Disclosures

All entities

13 Relationships between a parent and its subsidiaries shall be disclosed irrespective of whether there have been transactions between them. An entity shall disclose the name of its parent and, if different, the ultimate controlling party. If neither the entity’s parent nor the ultimate controlling party produces consolidated financial statements available for public use, the name of the next most senior parent that does so shall also be disclosed.

14 To enable users of financial statements to … Continue reading

Illustrative examples

The following examples accompany, but are not part of, IAS 24 Related Party Disclosures. They illustrate:

• • the partial exemption for government-related entities; and
• • how the definition of a related party would apply in specified circumstances.

In the examples, references to ‘financial statements’ relate to the individual, separate or consolidated financial statements.

Partial exemption for government-related entities

Example 1 – Exemption from disclosure (paragraph 25)

IE1 Government G directly or indirectly controls Entities 1 and 2 … Continue reading