Related Party Disclosures
(a)
identifying related party relationships and transactions;
(b)
identifying outstanding balances, including commitments, between an entity and its related parties;
(c)
identifying the circumstances in which disclosure of the items in (a) and (b) is required; and
(d)
determining the disclosures to be made about those items.
(a)
A person or a close member of that person’s family is related to a reporting entity if that person:
(i)
has control or joint control of the reporting entity;
(ii)
has significant influence over the reporting entity; or
(iii)
is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b)
An entity is related to a reporting entity if any of the following conditions applies:
(i)
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).
(ii)
One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
(iii)
Both entities are joint ventures of the same third party.
(iv)
One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v)
The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
(vi)
The entity is controlled or jointly controlled by a person identified in (a).
(vii)
A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
(viii)
The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.
(a)
that person’s children, spouse or domestic partner, brother, sister, father and mother;
(b)
children of that person’s spouse or domestic partner; and
(c)
dependants of that person or that person’s spouse or domestic partner.
(a)
short-term employee benefits, such as wages, salaries and social security contributions, paid annual leave and paid sick leave, profit-sharing and bonuses (if payable within twelve months of the end of the period) and non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services) for current employees;
(b)
post-employment benefits such as pensions, other retirement benefits, post-employment life insurance and post-employment medical care;
(c)
other long-term employee benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses and deferred compensation;
(d)
termination benefits; and
(e)
share-based payment.
(a)
two entities simply because they have a director or other member of key management personnel in common or because a member of key management personnel of one entity has significant influence over the other entity.
(b)
two joint venturers simply because they share joint control of a joint venture.
(c)
(i)
providers of finance,
(ii)
trade unions,
(iii)
public utilities, and
(iv)
departments and agencies of a government that does not control, jointly control or significantly influence the reporting entity,
(d)
a customer, supplier, franchisor, distributor or general agent with whom an entity transacts a significant volume of business, simply by virtue of the resulting economic dependence.
(a)
short-term employee benefits;
(b)
post-employment benefits;
(c)
other long-term benefits;
(d)
termination benefits; and
(e)
share-based payment.
(a)
the amount of the transactions;
(b)
the amount of outstanding balances, including commitments, and:
(i)
their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in settlement; and
(ii)
details of any guarantees given or received;
(c)
provisions for doubtful debts related to the amount of outstanding balances; and
(d)
the expense recognised during the period in respect of bad or doubtful debts due from related parties.
(a)
the parent;
(b)
entities with joint control of, or significant influence over, the entity;
(c)
subsidiaries;
(d)
associates;
(e)
joint ventures in which the entity is a joint venturer;
(f)
key management personnel of the entity or its parent; and
(g)
other related parties.
(a)
purchases or sales of goods (finished or unfinished);
(b)
purchases or sales of property and other assets;
(c)
rendering or receiving of services;
(d)
leases;
(e)
transfers of research and development;
(f)
transfers under licence agreements;
(g)
transfers under finance arrangements (including loans and equity contributions in cash or in kind);
(h)
provision of guarantees or collateral;
(i)
commitments to do something if a particular event occurs or does not occur in the future, including executory contracts * (recognised and unrecognised);
(j)
settlement of liabilities on behalf of the entity or by the entity on behalf of that related party; and
(k)
management contracts including for deputation of employees.
(a)
a government that has control or joint control of, or significant influence over, the reporting entity; and
(b)
another entity that is a related party because the same government has control or joint control of, or significant influence over, both the reporting entity and the other entity.
(a)
the name of the government and the nature of its relationship with the reporting entity (ie control, joint control or significant influence);
(b)
the following information in sufficient detail to enable users of the entity’s financial statements to understand the effect of related party transactions on its financial statements:
(i)
the nature and amount of each individually significant transaction; and
(ii)
for other transactions that are collectively, but not individually, significant, a qualitative or quantitative indication of their extent. Types of transactions include those listed in paragraph 21.
(a)
significant in terms of size;
(b)
carried out on non-market terms;
(c)
outside normal day-to-day business operations, such as the purchase and sale of businesses;
(d)
disclosed to regulatory or supervisory authorities;
(e)
reported to senior management;
(f)
subject to shareholder approval.
Notes, amendments & references (2)
# This Ind AS was notified vide G.S.R. 111(E) dated 16th February, 2015.
* Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, defines executory contracts as contracts under which neither party has performed any of its obligations or both parties have partially performed their obligations to an equal extent.