Related Parties

Question 1

What is a related party?

Answer 1

If the party has control or significant influence over the company or is a member of the company’s key management personnel

Question 2

What does arm’s length mean?

Answer 2

Under normal market conditions

Question 3

What info needs to be disclosed for related party transactions?

Answer 3

Nature of the Relationship
Details of the transactions
Any outstanding balances
Provisions
Expense recognised in respect of bad or doubtful debts
If at arm’s length then need to be stated (must be substantiated)

Question 4

What info needs to be disclosed for related party transactions in respect of the management

Answer 4

Name
Ultimate controlling party
Compensation of Management Personnel (Short Term, Post Employment, Other Long Term, Termination, Share Based Payments)