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Related Party

This topic has 3 replies, 3 voices, and was last updated 7 years ago by MikeLittle.

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March 3, 2018 at 1:49 pm #439897
Samin
Member
- Topics: 13
- Replies: 22
If a Parent company has over 50% ownership over a sub, they are related party? And is this always the case so all parents and subsidiares have a RP relationship?
March 3, 2018 at 3:48 pm #439921
mohsinmkg7
Participant
- Topics: 1
- Replies: 5
Yes they are always related parties. IAS 24 excerpt here:
“The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).”
Associates and joint ventures are related parties as well.
March 3, 2018 at 5:07 pm #439943
Samin
Member
- Topics: 13
- Replies: 22
Bit confused about the ‘except’ part. In which situation is a sub not RP?
Is it like two subsidiaries with the same parent are not RP but each sub is RP with the parent? Sorry, my brain can’t process certain things unless its straightforward.
March 3, 2018 at 6:56 pm #439953
MikeLittle
Keymaster
- Topics: 27
- Replies: 23309
Which except part? “Bit confused about the ‘except’ part”
Mohsin, who should not really be answering questions in this forum 🙁 has written “excerpt” which s maybe what you have read as “except”
An excerpt is an extract from a larger document, in this case it’s IAS 24
OK?
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