Related Party Disclosures - F2

Question 1

What is a related party?

Answer 1

A person or entity that is related to the entity that is preparing its financial statements

Question 2

What are typical related parties?

Answer 2

Key management personnel
Close family members of key management personnel
Entities that are members of the same group

Question 3

What is a related party transaction?

Answer 3

A transfer of resources, services or obligations between a reporting entity and a related party

Question 4

Where there have been transactions between entity and related party what must be disclosed?

Answer 4

Nature of related party relationship
Nature of transaction
Amount of transaction
Any outstanding balance relating to the transaction
Any provision for doubtful debts, related to the amount of any outstanding balance