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The objective of this Standard is to establish requirements for disclosure of: (a) related party relationships; and (b) transactions between a reporting enterprise and its related parties. Scope 1. This Standard should be applied in reporting related party relationships and
- Objective of IAS 24
- Who Are Related parties?
- What Are Related Party TransAcTions?
- Disclosure
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The objective of IAS 24 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 with such parties.
A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to as the 'reporting entity') [IAS 24.9]. 1. (a) A person or a close member of that person's family is related to a reporting entity if that person: 1.1. (i) has control or joint control over the reporting entity; 1.2. (ii) has ...
A related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price is charged. [IAS 24.9]
Relationships between parents and subsidiaries.Regardless of whether there have been transactions between a parent and a subsidiary, an entity must 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 financial statements available...
IAS 24 requires entities to disclose their transactions and outstanding balances with related parties, such as parents, subsidiaries, key management personnel, and joint ventures. The standard defines related parties, sets out the disclosure requirements, and provides examples and exceptions.
(a) identifying related party relationships and transactions; (b) identifying outstanding balances, including commitments, between an entity and its related parties; (c) identifying the circumstances in which disclosure of the items in (a) and (b) is required; and. (d) determining the disclosures to be made about those items.
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A related party is a person or entity that is related to the entity that is preparing its financial statements (in this Standard referred to as the ‘reporting entity’).
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AS 18 establishes requirements for disclosure of Related party relationships and transactions between enterprises. It defines Related party as a party with control or influence over another party. Standard covers entities like holding companies, subsidiaries, associates, individuals with influence, key management personnel.
This Standard requires entities to disclose their related party relationships, transactions and outstanding balances in their financial statements. It also explains the definitions, purpose and scope of related party disclosures and provides illustrative examples.
If an entity has had related party transactions during the periods covered by the financial statements, IAS 24 requires it to disclose the nature of the related party relationship as well as information about those transactions and outstanding balances, including commitments, necessary for users to understand the potential effect of the relation...
