Global Standards for the world economy

Sunday 25 September 2016

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IASB meeting summaries and observer notes


 IASB October 2006


 

The Board discussed whether an associate and a subsidiary of the associate�s significant investor are related parties, as defined in IAS 24. The Board confirmed that IAS 24 identifies these entities as related parties for both the associate�s individual and the group�s consolidated financial statements. However, the Board noted that under IAS 24 these entities are not related parties, for the subsidiary�s individual financial statements.

The Board tentatively decided to amend IAS 24 to include an associate and a subsidiary of the associate�s significant investor in the definition of a related party, for the subsidiary�s individual financial statements, and to clarify the Board�s intention to include these entities in the definition of a related party for the associate�s individual and the group�s consolidated financial statements.

The Board tentatively decided that transactions between associates of a common investor are not related party transactions in either the associate�s individual or the investor�s consolidated financial statements.

The Board also tentatively decided that its September 2006 decision to provide relief for state-controlled entities should be extended to include associates of the state.

Date: 10/19/2006