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Wiley Interpretation and Application of IFRS Standards
book

Wiley Interpretation and Application of IFRS Standards

by PKF International Ltd
May 2018
Intermediate to advanced content levelIntermediate to advanced
1016 pages
38h 56m
English
Wiley
Content preview from Wiley Interpretation and Application of IFRS Standards

29Related Party Disclosures

  1. Introduction
  2. Definitions of Terms
  3. Identification
    1. The Need for Related Party Disclosures
    2. Scope of the Standard
    3. Applicability
    4. Substance over Form
    5. Significant Influence
  4. Disclosures
    1. Financial Statement Disclosures
    2. Disclosure of Parent-Subsidiary Relationships
    3. Disclosures to Be Provided
      1. Arm's-length transaction price assertions
      2. Aggregation of disclosures
      3. Compensation
    4. Comparatives
    5. Government-Related Entities
  5. Example of Financial Statement Disclosures
  6. US GAAP Comparison

Introduction

Relationships, transactions and outstanding balances between entities that are considered related parties, as defined by IAS 24, Related Party Disclosures, must be adequately disclosed in financial statements of a reporting entity. Such disclosures have long been a common feature of financial reporting, and most national accounting standard-setting bodies have imposed similar mandates. The rationale for compelling such disclosures is the concern that entities which are related to each other, whether by virtue of an ability to control or to exercise significant influence or where a person is a member of key management of a reporting entity (all as defined under IFRS), usually have leverage in influencing transaction terms, including values.

If these events and transactions were simply mingled with transactions conducted with other unrelated parties on normal arm's-length terms or negotiated terms, the users of the financial statements would likely be impeded in their ability ...

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Publisher Resources

ISBN: 9781119461500