IAS 24 - Related Parties and Integrated Reporting

Question 1

Define Related parties.

Answer 1

Definition of a related party:

A related party is typically a person or an entity that is in a position to influence the basis under which transaction are undertaken and whether the transactions are undertaken in the first place.

• Key management personnel( Directors, Senior employees)
• Close family members of KMP
• Entities that are members of the same group (Parent, Sub’s, Associates and JV’s)

Question 2

Related party transactions disclosure requirements

Answer 2

• The nature of the related party relationship
• The nature of the transaction
• The amount of the transaction
• Any outstanding balance relating to the transaction
• Any provisions for doubtful debts related to the amount of any outstanding balance.