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Related Party Disclosures

IASB meeting summaries and observer notes

 IASB July 2009



The Board discussed responses to the exposure draft (ED) Relationships with the State, published in December 2008, and decided tentatively:

  • that the proposed exemption for state-controlled entities should, as proposed in the ED, apply in all cases of common state control, even if the entities in question are related for other reasons.
  • not to limit the proposed exemption for transactions within a group headed by a publicly quoted entity or with an entity�s direct owner.
  • not to require additional disclosure about direct related party transactions within a state-controlled sub-group.
  • that when the exemption applies, an entity should disclose the nature and extent of individually significant transactions and of transactions that are significant collectively but not individually.
  • to replace the definition of �state� that appeared in the exposure draft State-controlled Entities and the Definition of a Related Party with the definition of �government� that appears in IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The Board does not intend to give further guidance on how to interpret the meaning of �government�.
  • that, as proposed in the ED, two entities are related to each other whenever a person or a third entity has joint control over one entity and that person (or a close member of that person�s family) or the third entity has joint control or significant influence over the other entity.
  • to delete references to significant voting power from the definition of a related party.
  • that the amendments would apply prospectively for periods beginning on or after 1 January 2011, with early adoption permitted.
  • that the amendments do not require re-exposure.

The Board instructed the staff to proceed to drafting the amendments to IAS 24, for issue later this year.


Date: 7/22/2009