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Dear Sir,
I got confused that the definition that a member of key management personnel of reporting entity or of a parent of the reporting entity is a related party to the reporting entity but one of cases that are not related parties is two entities have a director or other member of key management personnel in common.
Please enlighten me and help with the questions of Emcee (a sports organisation) – part (c) in kit book and Abby (specimen 1).
Thank you very much.If someone is director of 2 companies, the 2 companies will not necessarily be RPs.
If each Board of Directors has, say, 10 directors, then 1 director on his/her own is unlikely to be able to compel the 2 companies to trade with each other.
As always with IAS 24, you have to exercise professional judgement.
No harm in saying that disclosure MAY be required rather than MUST be required.
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