Related-party relationships are a normal feature of commerce and business. Entities frequently pursue their activities through subsidiaries, joint ventures, and associates. In such circumstances, entities have the ability to affect the financial and operating policies of investees through the presence of control, joint control, and significant influence. Related parties extend beyond these relationships. Financial reporting of related-party relationships and transactions is challenging.
This session will:
- Define related parties
- Explain key requirements of AASB 124 Related Party Disclosure and AASB 12 Disclosure of Interests in Other Entities
- Define related-parties’ context for charities and NFPs
- Explore special purpose financial statements and related parties, and
- Detail simplified-disclosure and related-party transactions.
