ias 24- related party

Question 1

what is the need for this standard?

Answer 1

-can cause loss to company’s SH by being friendly to others
-eg transfer pricing, can cause loss to NCI and parent company can keep all the profit
can sell car at lower price to director
give high salaries to directors etc

Question 2

are we supposed to disclose transactions done at normal market value to related parties

Answer 2

yes

Question 3

are we supposed to disclose transactions below market value (undervalue)

Answer 3

yesss

Question 4

are salaries of key management related party transactions?

Answer 4

yes, salaries and benefits
eg. short term, long term, post employment benefits, termination benefits.
all must be disclosed

Question 5

who are key management personnel?

Answer 5

those who are directly (EDs) or indirectly (NEDs) involved in planning control and decision-making of the organisation.

Question 6

within group transactions treatment during consolidation

Answer 6

will be eliminated

Question 7

If a company has 3 boards, 8 directors in each board, shall individual benefit be disclosed?

Answer 7

dont disclose individual benefit (kidnapping)

total benefit given to total directors should be disclosed in F.S in following breakup:
-short term
-long term
-post employment benefits
-termination benefits
-share options

Question 8

is there any exception of disclosure for govt and subsidaries plus fellow subsidiaries?

Answer 8

there is an exception for routine disclosure
just disclose significant transactions and relationship between companies