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International Accounting Standard (IAS) 24
Related Party Disclosures

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International Accounting Standard (IAS) 24

IAS 24

Related Party Disclosures

Issued in July 1984

Revised in December 2003

Recent amendment: by IAS 1 revised in September 2007

A party is related to an entity
      --> if the party:

      (1) is controlled by the entity, or controls the entity
            --> including common control, joint control, significant influence
      (2) is an associate of the entity
      (3) is a joint venture, where the entity is a venturer
      (4) is a member of key management personnel of the entity
      (5) is a close member of the family
            --> of any individual
            --> mentioned in (1) or (4)
            --> e.g., an individual who controls the entity
            --> e.g., an individual who is a member of key management personnel
      (6) is an entity
            --> controlled (jointly controlled, significantly influenced) by
            --> any individual
            --> mentioned in (4) or (5)
      (7) is a post-employment benefit plan
            --> for the benefit of employees of
            --> the entity or a related party of the entity

Close members of the family may include:

      (1) domestic partner
      (2) children
      (3) children of domestic partner
      (4) dependants
      (5) dependants of domestic partner

Relationships between parents and subsidiaries
--> are disclosed
--> regardless of the existence of related party transactions

If control exists,
related party relationship is disclosed
--> regardless of the existence of related party transactions

Key management personnel compensation
      --> is disclosed in total and
      --> for each category listed below:
            (1) short-term benefits
            (2) post-employment benefits
            (3) other long-term benefits
            (4) termination benefits
            (5) share-based payment

If there were transactions between related parties,
      --> the following items are disclosed (this is the minimum)
            (1) transaction amount
            (2) outstanding balances
            (3) doubtful debts provisions related to outstanding balances
            (4) doubtful debts related expenses recognised

Disclosure categories
      --> these amounts are disclosed for each category listed below:
            (1) parent (entity that has control over the entity)
            (2) entities that have joint control or significant influence over the entity
            (3) subsidiaries (of the entity)
            (4) associates
            (5) joint ventures (where the entity is a venturer)
            (6) key management personnel (of the entity or parent)
            (7) other related parties

Amounts payable and receivable (to and from related parties)
--> for each of disclosure categories
--> are disclosed

Examples of related party transactions
      --> to be disclosed

            (1) purchases or sales of goods, property, other assets
            (2) providing or receiving of services

            (3) leases
            (4) transfers under licence agreement
            (5) transfers of research and development

            (6) transfers under finance arrangements
            (7) providing guarantees or collateral
            (8) settlement of liabilities by the entity for another party
            (9) settlement of liabilities by another party for the entity

            (10) participation by a parent or subsidiary
                    --> in a defined benefit plan
                    --> that shares risks between group entities

IAS 24 Technical Notes