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IAS states that Related Parties should be disclosed even if there is no transactions takes place between the parties. How much is this possible because of the fact like any key management personnel can have many of their close relatives in many other entities in decision making positions and should the entity disclose each and every of these entities?
Basically, yes! I’m not sure how it works in practice – for instance, do companies simply state that “there have been no transactions which fall to be disclosed with any related parties”? or do companies actually comply with the letter of the IAS and disclose the identity of all related parties?
I have a set of fin stats for a UK public company in front of me – year end 31 December, 2007
Note 38 – the last note – states “The group had no related party transactions, other than key management compensation as referred to in note 6. Related party transactions carried out by the company during the year ended 31 december, 2007 were as follows: ….”
It then lists 6 transactions, all involving subsidiaries.
I don’t know if that helps – maybe some big 4 students could help you
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