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IAS 24 requires entities to disclose in their financial statements information about transactions with related parties. In broad terms, two parties are related to each other if one party controls, or significantly influences, the other party.
The IASB has revised IAS 24 in response to concerns that the previous disclosure requirements and the definition of a ‘related party’ were too complex and difficult to apply in practice, especially in environments where government control is pervasive. The revised standard addresses these concerns by:
- Providing a partial exemption for government-related entities.
Until now, if a government controlled, or significantly influenced, an entity, the entity was required to disclose information about all transactions with other entities controlled, or significantly influenced by the same government. The revised standard still requires disclosures that are important to users of financial statements but eliminates requirements to disclose information that is costly to gather and of less value to users. It achieves this balance by requiring disclosure about these transactions only if they are individually or collectively significant.
- Providing a revised definition of a related party.
The IASB has simplified the definition and removed inconsistencies.
The document IAS 24 Related Party Disclosures is available for eIFRS subscribers from today.
Printed copies of IAS 24 Related Party Disclosures (ISBN 978-1-907026-41-6) will be available shortly, at £15 plus shipping, from the IASC Foundation Publications Department.
Those wishing to subscribe to eIFRSs should visit the online shop at www.iasb.org or contact:
IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org
Press enquiries
For press enquiries, please contact:
- Mark Byatt, Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
Email: mbyatt@iasb.org
- Sonja Horn, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463
Email: shorn@iasb.org
Technical enquiries
For technical enquiries, please contact:
- Peter Clark, Director of Research, IASB
telephone: +44 (0)20 7246 6463, email: pclark@iasb.org
- Jane Jordan, Project Manager, IASB
telephone: +44 (0)20 7246 6423, email jjordan@iasb.org
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