International Financial Reporting Standards_guide.pdf

328 Chapter 31 Related-Party Disclosures (IAS 24)
31.3.2 A related-party transaction is a transfer of resources, services, or obligations between
related parties, regardless of whether a price is charged.
31.3.3 Close members of the family of an individual are family members who might be
expected to influence, or be influenced by, that individual in their dealings with the entity.
They may include:
■ the individual’s domestic partner and children;
■ children of the individual’s domestic partner; and
■ dependants of the individual or their domestic partner.
31.3.4 Compensation includes all employee benefits (see also IAS 19 and IFRS 2) and all
forms of such consideration paid, payable, or provided by the reporting entity, or on behalf
of the reporting entity, in exchange for services rendered to the entity. It also includes such
consideration paid on behalf of a parent of the reporting entity in respect of the entity.
Compensation includes:
■ short-term employee benefits and nonmonetary benefits for current employees;
■ postemployment benefits;
■ other long-term employee benefits;
■ termination benefits; and
■ share-based payments.
FIGURE 31.1 Illustration of Related Parties of a Reporting Entity
Crossed-out entities are not related to the reporting entity in the black box.
Other entity – 100%
shareholding
Postemployment
retirement plan
Key management
Ultimate parent
Significant influence over
entity
Parent
Joint control over entity
Fellow subsidiary
Entity
Fellow associate or
joint venture
Subsidiary
Associate
Joint venture
Associate Subsidiary Associate Subsidiary Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Associate