Related Parties

Question 1

Who is a related party? (in OB)

Answer 1

a person (including family members) who have:
- control
- significant influence
- management responsibility

a company:
- parent/subsidiaries/other subsidiaries
- associate/company with significant influence
- joint venture/joint venture owner/same joint venture owner
- same joint venture/associate owner

Question 2

What disclosure needs to be made in relation to related parties?

Answer 2

• nature of the relationship
• value of the transactions
• amount of any balance outstanding at year end
• compensation received by directors
• terms and conditions of any outstanding balance (security/guarantees)
• amounts written off
• whether transactions are on an arm’s length basis