2009 Annual Report - CRH

33. Related Party Transactions
The principal related party relationships requiring disclosure in the Consolidated Financial Statements of the Group under
IAS 24 Related Party Disclosures pertain to: the existence of subsidiaries, joint ventures and associates; transactions with
these entities entered into by the Group; and the identification and compensation of key management personnel.
Subsidiaries, joint ventures and associates
The Consolidated Financial Statements include the financial statements of the Company (CRH plc, the ultimate parent) and
its subsidiaries, joint ventures and associates as documented in the accounting policies on pages 66 to 71. The Group’s
principal subsidiaries, joint ventures and associates are disclosed on pages 124 to 129.
Sales to and purchases from, together with outstanding payables to and receivables from, subsidiaries and joint ventures
are eliminated in the preparation of the Consolidated Financial Statements (either in full or to the extent of the Group’s
interest) in accordance with IAS 27 Consolidated and Separate Financial Statements and IAS 31 Interests in Joint Ventures.
The amounts in respect of joint ventures are immaterial in the context of the year-end 2009 financial statements. Loans
extended by the Group to joint ventures and associates (see note 15) are included in financial assets (whilst the Group’s
share of the corresponding loans payable by joint ventures is included in interest-bearing loans and borrowings due to the
application of proportionate consolidation in accounting for the Group’s interests in these entities). Sales to and purchases
from associates during the financial year ended 31st December 2009 amounted to €17 million (2008: €17 million) and €458
million (2008: €584 million) respectively. Amounts receivable from and payable to associates (arising from the aforementioned
sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 18 and 19 to
the Consolidated Financial Statements.
Terms and conditions of transactions with subsidiaries, joint ventures and associates
In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and
purchases from other related parties (being joint ventures and associates) are conducted in the ordinary course of business
and on terms equivalent to those that prevail in arm’s-length transactions. The outstanding balances included in receivables
and payables as at the balance sheet date in respect of transactions with associates are unsecured and settlement arises in
cash. No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to
joint ventures and associates (the respective amounts being disclosed in note 15) are extended on normal commercial terms
in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals.
Key management personnel
For the purposes of the disclosure requirements of IAS 24, the term “key management personnel” (i.e. those persons having
authority and responsibility for planning, directing and controlling the activities of the Company) comprises the Board of
Directors which manages the business and affairs of the Company. As identified in the Report on Directors’ Remuneration
on pages 51 to 59, the Directors, other than the non-executive Directors, serve as executive officers of the Company. Full
disclosure in relation to the 2009 and 2008 compensation entitlements of the Board of Directors is provided in the Report
on Directors’ Remuneration with disclosure of the share-based payment expense relating to the Board of Directors provided
in note 7 to the Consolidated Financial Statements. Other than these compensation entitlements, there were no other
transactions involving key management personnel.
34. Board Approval
The Board of Directors approved and authorised for issue the financial statements on pages 62 to 115 in respect of the year
ended 31st December 2009 on 1st March 2010.
CRH 115