The staff presented four sweep issues that arose from Board members� comments on the pre-ballot draft of the Exposure Draft of Amendments to IAS 24 Related Party Disclosures.
IAS 24 is inconsistent in the way it considers key management personnel. IAS 24 identifies as a related party significant investees of the entity�s key management personnel. However, IAS 24 does not identify the entity that the key management personnel manage as related parties to those investees. The Board decided to address this inconsistency by broadening the definition of a related party to include the latter case.
The proposed amendments to IAS 24 will include an exemption from the disclosures required by paragraph 17 for entities that are state-controlled or under significant influence by a state. If influence exists between the two related parties, the exemption will not apply. The Board tentatively decided that if any indicators of influence exist then the entity is not exempted.
The board also decided to clarify that a related party transaction includes future commitments. Finally, the Board decided that in response to requests for urgency from constituents, and given the nature of the proposed amendments, the comment period would be 90 days rather than the 120 days originally proposed.