RPT ASPE 3840 IAS 24

Question 1

What conditions must be
met in order for a related
party transaction to be
recorded at exchange
value?

Answer 1

ASPE 3840
* Transaction must be:
‒ In normal course of operations
OR
‒ Not in normal course of operations but there is substantive change in ownership
AND exchange amount supported by independent evidence

• If also non-monetary combine rules as explained above in NMT section (see flow chart in HB 3840)
• If transaction doesn’t meet the above conditions it must be recorded at carrying value

IAS 24
* No guidance on how to measure related party
transactions (only guidance on disclosure) therefore they are recognized in the same way as
non-related party transactions