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Will all transactions between the parent and the subsidiary be Related? Even though the transactions must be eliminated on consolidation?
The objective of IAS 24 is “to ensure that an ENTITY’S financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties”.
The scope para goes on to say “Related party transactions and outstanding balances with other entities in a group are disclosed in an ENTITY’S financial statements. Intragroup related party transactions and outstanding balances are eliminated … in the preparation of consolidated financial statements.” So no disclosure in consolidated financial statements.
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