The objective of IAS 24 Related Party Disclosures is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties.
A related party is a person or an entity that is related to the reporting entity:
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. If an entity has had related party transactions during the periods covered by the financial statements, IAS 24 Related Party Disclosures requires it to disclose the nature of the related party relationship as well as information about those transactions and outstanding balances, including commitments, necessary for users to understand the potential effect of the relationship on the financial statements.
IAS 24 Related Party Disclosures requires an entity to disclose key management personnel compensation in total and by category as defined in the Standard.
IAS 24 Related Party Disclosures is Copyright: IFRS Foundation
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