IAS 24 - Related Party Transactions

Question 1

Defining related parties - (Persons)

Answer 1

• has control or joint control of the reportion entity.
  *has significant influence over the reporting entity.
  *is a member of key management personnel of the reporting entity or of a parent of the reporting entity.

Question 2

Defining related parties - (Entity)

Answer 2

*Entity and reporting entity are members of the same group, such as a parent entity and its subsidiaries.
*Entity is an associate or joint venture of the other entity.
*Two entities are joint ventures of the same third parties.
*A post-employment benefit plan for the benefit of employees.

Question 3

Defining related party transactions

Answer 3

*Sales and purchases of goods
*Sales and purchases of property and other assets.
*Rendering or receiving services
*Leasing arrangements
*Finance arrangements
*Provision of guarantees or collateral
*Commitments to do something if a particular event occurs (or does not occur) in the future.

Question 4

Disclosure requirements under IAS 24

Answer 4

*The nature of the related party relationship.
*A description of the related party transactions.
*The transaction amounts
*Details and amounts of any outstanding balance.
*Any allowance for receivables against outstanding balances.
*Any irrecoverable debt expense in respect of outstanding.
*Total compensation given to key management personnel broken down into short-term benefits, pension benefits, termination benefits, and share-based payments
*Reporting entity exempt from related party disclosures where a government-related entity has control/joint control/significant influence over the reporting entity but must disclose the details of the government and the relationship with the reporting entity and details of significant transactions