(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009(ix)(x)a person or a close member of that person’s family has bothsignificant influence over the entity or significant voting power in itand joint control over the reporting entity.a member of the key management personnel of the entity or of aparent of the entity, or a close member of that member’s family, hascontrol or joint control over the reporting entity or has significantvoting power in it.33.3 In considering each possible related party relationship, an entity shall assess thesubstance of the relationship and not merely the legal form.33.4 In the context of this IFRS, the following are not necessarily related parties:(a)(b)(c)two entities simply because they have a director or other member of keymanagement personnel in common.two venturers simply because they share joint control over a joint venture.any of the following simply by virtue of their normal dealings with anentity (even though they may affect the freedom of action of an entity orparticipate in its decision-making process):(i)(ii)(iii)(iv)providers of finance.trade unions.public utilities.government departments and agencies.(d)a customer, supplier, franchisor, distributor or general agent with whom anentity transacts a significant volume of business, merely by virtue of theresulting economic dependence.DisclosuresDisclosure of parent-subsidiary relationships33.5 Relationships between a parent and its subsidiaries shall be disclosed irrespectiveof whether there have been related party transactions. An entity shall disclose thename of its parent and, if different, the ultimate controlling party. If neither theentity’s parent nor the ultimate controlling party produces financial statementsavailable for public use, the name of the next most senior parent that does so(if any) shall also be disclosed.Disclosure of key management personnel compensation33.6 Key management personnel are those persons having authority and responsibilityfor planning, directing and controlling the activities of the entity, directly orindirectly, including any director (whether executive or otherwise) of that entity.Compensation includes all employee benefits (as defined in Section 28 EmployeeBenefits) including those in the form of share-based payment (see Section 26Share-based Payment). Employee benefits include all forms of consideration paid,© IASCF 197