Related Party Disclosures
IAS 24 Related Party Disclosures requires disclosures necessary to draw attention to the possibility that an entity’s financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.
The purpose of this project is to update and clarify the requirements in IAS 24 Related Party Disclosures. The main objectives of the project are to address:
(a) the requirements of IAS 24 for state-controlled entities when they transact with similar entities; and
(b) whether, when an associate of an entity is preparing its own financial statements, the requirements of IAS 24 should include as related party transactions, transactions between the associate and a subsidiary of the associate’s significant investor
Is this project part of the Memorandum of Understanding?
No. The MoU sets out a Roadmap of Convergence between IFRSs and US GAAP 2006-2008.
Click here for more information on the MoU.
Next due process step
The next due process steps are to consider the comments received from constituents on the Exposure Draft of Amendments to IAS 24 (‘Exposure Draft’) and to issue a final Standard.
Due process steps completed
Stage 1: Setting the agenda
At its July 2006 meeting, the Board added the project to its agenda.
Stage 2: Project Planning
The project does not have a working group due to its limited scope. Further, this project is being conducted by the IASB only.
Stage 3: Development and publication of a discussion paper
A discussion paper is not a mandatory step in the IASB Due Process Handbook. A discussion paper was not considered necessary for this project because this project is a short-term project with a limited scope.
Stage 4: Development and publication of an Exposure Draft
On 22 February 2007, the IASB published an Exposure Draft of proposed Amendments to IAS 24 Related Party Disclosures – State-controlled Entities and the Definition of a related party. The comment period ended on 25 May 2007.
Stage 5: Development and publication of an IFRS
The IASB is currently redeliberating amendments to IAS 24 proposed in the Exposure Draft, in the light of comments received from constituents.
Estimated project completion
The current project plan aims to issue a final Standard by the end of 2008.
Further information
- Click here to download the full project summary.
- Click here to view Comment Letters on the Exposure Draft
Project contacts: