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maam this is a very silly question. But better late than never! I really wanted to understand the difference between management and Key management personnel, as in how exactly are KMP different from regular management?
As a technical term “key management personnel” is defined in IAS 24:
“Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, INCLUDING any director (whether executive or otherwise) of that entity.”
So any director is, by definition, “key management personnel” – but someone can be key management personnel who is not a director.
So a departmental head/manager could be KMP if they have “authority AND responsibility”. So if they can’t take a course of action without the approval of a director or the board, I would say they are not KMP.
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