O'Reilly logo

Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition by Liesel Knorr, Graham Holt, Abbas A. Mirza

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 17
RELATED-PARTY DISCLOSURES (IAS 24)

BACKGROUND AND INTRODUCTION

Related-party transactions are a normal and a common feature of business and commerce these days. However, in some cases, entities may enter into transactions with related parties at terms that unrelated parties might not enter into under normal circumstances. Thus the existence of a related-party relationship may have an effect on profit or loss and the financial position of an entity. In order to ensure “transparency” in financial reporting, most accounting standards around the world prescribe disclosures of transactions with related parties.
IAS 24, Related-Party Disclosures, is the Standard under the International Financial Reporting Standards (IFRS) that prescribes the requirements for the disclosure of related-party relationships in financial statements. The Standard was initially issued by the International Accounting Standards Committee (IASC), IASB’s predecessor, in July 1984, and was reformatted by it in 1994. In 2003 the IASB issued a revised IAS 24 and the Standard was subsequently amended by amendments to IAS 19 and IAS 1. Recently, in November 2009, the IASB issued a revised IAS 24.
The purpose of the Standard is to make the reader of financial statements aware of the existence of related-party relationships and the extent to which an entity’s financial position, profitability, or cash flows may have been affected by transactions with such parties. It should be noted that this is a disclosure ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required