IAS 24 Related Party Disclosures - IFRS Foundation

In December 2003 the Board issued a revised IAS 24 as part of its initial agenda of technical projects that included amending disclosures on management ... ABOUTUS AROUNDTHEWORLD ISSUEDSTANDARDS APPLYINGSTANDARDS PROJECTS NEWS&EVENTS SERVICES SUSTAINABILITY TheIFRSFoundationisanot-for-profit,publicinterestorganisationestablishedtodevelophigh-quality,understandable,enforceableandgloballyacceptedaccountingandsustainabilitydisclosurestandards. 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Supportingapplication SupportingmaterialsforIFRSAccountingStandards SupportingmaterialsforIFRSSustainabilityDisclosureStandards SupportingconsistentapplicationofIFRSAccountingStandards SupportingmaterialsforIFRSforSMEsAccountingStandard TheworkplanincludesallprojectsundertakenbytheIFRSFoundationTrustees,theInternationalAccountingStandardsBoard(IASB),theInternationalSustainabilityStandardsBoard(ISSB)andtheIFRSInterpretationsCommittee.Publicconsultationsareakeypartofallourprojectsandareindicatedontheworkplan. Projects Workplan Openforcomment Completedprojects IASBpipelineprojects SASBStandardsprojects Reviews IASBPost-implementationReviews Readourlatestnews,featuresandpressreleasesandseeourcalendarofevents,meetings,conferences,webinarsandworkshops. 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Standard-setting InternationalSustainabilityStandardsBoard Consolidatedorganisations Consolidatedorganisations(CDSB&VRF) Projects Climate-relatedDisclosures GeneralSustainability-relatedDisclosures News Latestnews ABOUTUS AbouttheIFRSFoundation Whoweare HowwesetIFRSStandards Consolidatedorganisations(VRF&CDSB) Workwithus Contactus Governance Ourstructure MonitoringBoard Trustees Consultativebodies IFRSAccounting InternationalAccountingStandardsBoard IFRSInterpretationsCommittee IFRSSustainability InternationalSustainabilityStandardsBoard ISSBInvestorAdvisoryGroup IntegratedReporting IntegratedReportingandConnectivityCouncil AROUNDTHEWORLD Globalaccountingstandards Whyglobalaccountingstandards? AccountingStandardsbyjurisdiction Adoptionandcopyright Globalsustainabilitystandards Whydoweneedaglobalbaselineforcapitalmarkets? ISSUEDSTANDARDS IFRSAccountingStandards IFRSAccountingStandardsNavigator IFRSforSMEsAccountingStandard Translations IFRSAccountingTaxonomy Editorialcorrections IFRSSustainabilityDisclosureStandards(inprogress) GeneralSustainability-relatedDisclosures Climate-relatedDisclosures ExistingStandards SASBStandards IntegratedReporting IntegratedReportingFramework IntegratedThinkingPrinciples APPLYINGSTANDARDS Supportingapplication SupportingmaterialsforIFRSAccountingStandards SupportingmaterialsforIFRSSustainabilityDisclosureStandards SupportingconsistentapplicationofIFRSAccountingStandards SupportingmaterialsforIFRSforSMEsAccountingStandard PROJECTS Projects Workplan Openforcomment Completedprojects IASBpipelineprojects SASBStandardsprojects Reviews IASBPost-implementationReviews NEWS&EVENTS Newsandpodcasts Latestnews Monthlynewssummaries IASBpodcasts ISSBpodcasts InterpretationsCommitteepodcasts Speeches Updates IASBUpdates ISSBUpdates InterpretationsCommitteeUpdates IFRSforSMEsAccountingStandardUpdate InvestorUpdates Meetingsandevents Calendar Mediaresources Mediaenquiries Pressreleases Otherresources SERVICES IFRSAccounting Productsandservices IFRSshop Speakerrequests Licensing IFRSSustainability Productsandservices Register RegisterforIFRS.org SUSTAINABILITY Standard-setting InternationalSustainabilityStandardsBoard Consolidatedorganisations Consolidatedorganisations(CDSB&VRF) Projects Climate-relatedDisclosures GeneralSustainability-relatedDisclosures News Latestnews Follow-IAS24RelatedPartyDisclosures× YouneedtoSignintousethisfeature Close ShowSections About Standard News About TheobjectiveofIAS24istoensurethatanentity’sfinancialstatementscontainthedisclosuresnecessarytodrawattentiontothepossibilitythatitsfinancialpositionandprofitorlossmayhavebeenaffectedbytheexistenceofrelatedpartiesandbytransactionsandoutstandingbalances,includingcommitments,withsuchparties. Arelatedpartyisapersonoranentitythatisrelatedtothereportingentity:  Apersonoraclosememberofthatperson’sfamilyisrelatedtoareportingentityifthatpersonhascontrol,jointcontrol,orsignificantinfluenceovertheentityorisamemberofitskeymanagementpersonnel. Anentityisrelatedtoareportingentityif,amongothercircumstances,itisaparent,subsidiary,fellowsubsidiary,associate,orjointventureofthereportingentity,oritiscontrolled,jointlycontrolled,orsignificantlyinfluencedormanagedbyapersonwhoisarelatedparty.  Arelatedpartytransactionisatransferofresources,servicesorobligationsbetweenareportingentityandarelatedparty,regardlessofwhetherapriceischarged.Ifanentityhashadrelatedpartytransactionsduringtheperiodscoveredbythefinancialstatements,IAS24requiresittodisclosethenatureoftherelatedpartyrelationshipaswellasinformationaboutthosetransactionsandoutstandingbalances,includingcommitments,necessaryforuserstounderstandthepotentialeffectoftherelationshiponthefinancialstatements. IAS24requiresanentitytodisclosekeymanagementpersonnelcompensationintotalandbycategoryasdefinedintheStandard. Standardhistory InApril2001theInternationalAccountingStandardsBoard(Board)adoptedIAS 24RelatedPartyDisclosures,whichhadoriginallybeenissuedbytheInternationalAccountingStandardsCommitteeinJuly1984. InDecember2003theBoardissuedarevisedIAS 24aspartofitsinitialagendaoftechnicalprojectsthatincludedamendingdisclosuresonmanagementcompensationandrelatedpartydisclosuresinseparatefinancialstatements.TheBoardrevisedIAS 24againtoaddressthedisclosuresingovernment‑relatedentities. InNovember2009theBoardissuedarevisedIAS 24tosimplifythedefinitionof‘relatedparty’andtoprovideanexemptionfromthedisclosurerequirementsforsomegovernment‑relatedentities. OtherStandardshavemademinorconsequentialamendmentstoIAS 24.TheyincludeIFRS 10ConsolidatedFinancialStatements(issuedMay2011),IFRS 11JointArrangements(issuedMay2011),IFRS 12DisclosureofInterestsinOtherEntities(issuedMay2011),IAS 19EmployeeBenefits(issuedJune2011),InvestmentEntities(AmendmentstoIFRS 10,IFRS 12andIAS 27)(issuedOctober2012)andAnnualImprovementstoIFRSs2010–2012Cycle(issuedDecember 2013). Relatedactiveprojects Relatedcompletedprojects KeyManagementPersonnel(AmendmentstoIAS24) RelatedPartyDisclosures(AmendmentstoIAS24) RelatedIFRSStandards RelatedIFRICInterpretations Unconsolidatedamendments Implementationsupport IAS24RelatedPartyDisclosures Yourprivacy IFRSFoundationcookies Weusecookiesonifrs.orgtoensurethebestuserexperiencepossible.Forexample,cookiesallowustomanageregistrations,meaningyoucanwatchmeetingsandsubmitcommentletters.Cookiesthattellushowoftencertaincontentisaccessedhelpuscreatebetter,moreinformativecontentforusers. 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