IAS 24 Related Party Disclosures
Identify relationships using the standard’s detailed definition, considering control, joint control, significant influence, key management personnel and relevant family connections. Required disclosures include the nature of the relationship and information needed to understand transactions and outstanding balances, even where transactions are at market price. Apply the standard’s particular requirements and exemptions, including those for government-related entities.
Worked example
A business purchases services from a company controlled by its chief executive. It identifies the relationship and assesses the required disclosures of transactions and outstanding balances.
Common mistake
Assuming a market-price transaction never requires disclosure, or classifying every large customer as a related party.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |