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IAS 24 Amendments - Related Party Disclosures


IAS 24 Related Party Disclosures provides guidance on the 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. The main objectives of the project would be 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 an associate and a subsidiary of the associate's significant investor.

In 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.

After considering respondents' comments, the Board decided to re-expose the proposals. The new ED Relationships with the State was issued in December 2008. The revised proposals aimed to: (a) simplify the definition of a “related party” while eliminating some internal inconsistencies and to make it symmetrical; and (b) provide relief for government-related entities in relation to the amount of information such entities need to provide in respect to related party transactions.  

This project ended at this stage and a new project was started  entitled IAS 24 Amendments - Relationships with the State.

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