what is arm`s length transactions?
In IAS24 Related party specifies that entity may only disclose that related party transactions were made on terms equivalent to those that prevail in arm`s length transactions if such terms can be substantiated.
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Habib74444·
Thank you chris ! Do you share more examples of identifying related party transactions ?
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amos·
Hi Sir, I want to know if directors of a subsidiary and the parent company are related parties.
Thanks
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Habib74444·
Kmp (director ) of reporting entity is related party for other entity but mere directors of both companies are not related parties .
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fatinka·
Hi Chris! Thank you for your lecture. It's so easy to follow... I just want to clarify as per last example. Is it correct:
-Close family and Subsidiary are not RPs
- Director and Post-employement benefit plan are RPs
Thank you
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P2-D2Tutor·
Hi,
Close family and a subsidiary would both be a related party as there is influence/control.
You are correct with the director and post-employment benefit plan.
In IAS24 Related party specifies that entity may only disclose that related party transactions were made on terms equivalent to those that prevail in arm`s length transactions if such terms can be substantiated.
Thanks
-Close family and Subsidiary are not RPs
- Director and Post-employement benefit plan are RPs
Thank you
Close family and a subsidiary would both be a related party as there is influence/control.
You are correct with the director and post-employment benefit plan.
Thanks