Related parties

This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.

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November 3, 2023 at 10:25 pm #694363
Gian97
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Hi

In a scenario where a potential related party bought 5% shares of the equity shares of the reporting entity. My question is, even if she acquired 20% (and achieve significant influence), why would that have to be disclosed as a related party transaction in the first place if the transaction is not with the reporting entity but with group shareholders?

Thanks in advance!
November 4, 2023 at 7:12 pm #694404
Stephen Widberg
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Purchase of shares in the company probably not RPT.

Once she has 20%, transactions with the company might well be RPT>

IAS 24 = judgement call. Examiner will be tolerant.

🙂
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