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  • IAS 18 — Revenue
    whether an entity is acting as a principal or as an agent 1 January 2018 IAS 18 will be superseded by IFRS 15 Revenue from Contracts with Customers Related Interpretations IFRIC 18 Transfers of Assets from Customers IFRIC 15 Agreements for the Construction of Real Estate IFRIC 13 Customer Loyalty Programmes IFRIC 12 Service Concession Arrangements SIC 27 Evaluating the Substance of Transactions in the Legal Form of a Lease SIC 31 Revenue Barter Transactions Involving Advertising Services Summary of IAS 18 Objective of IAS 18 The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events Key definition Revenue the gross inflow of economic benefits cash receivables other assets arising from the ordinary operating activities of an entity such as sales of goods sales of services interest royalties and dividends IAS 18 7 Measurement of revenue Revenue should be measured at the fair value of the consideration received or receivable IAS 18 9 An exchange for goods or services of a similar nature and value is not regarded as a transaction that generates revenue However exchanges for dissimilar items are regarded as generating revenue IAS 18 12 If the inflow of cash or cash equivalents is deferred the fair value of the consideration receivable is less than the nominal amount of cash and cash equivalents to be received and discounting is appropriate This would occur for instance if the seller is providing interest free credit to the buyer or is charging a below market rate of interest Interest must be imputed based on market rates IAS 18 11 Recognition of revenue Recognition as defined in the IASB Framework means incorporating an item that meets the definition of revenue above in the income statement when it meets the following criteria it is probable that any future economic benefit associated with the item of revenue will flow to the entity and the amount of revenue can be measured with reliability IAS 18 provides guidance for recognising the following specific categories of revenue Sale of goods Revenue arising from the sale of goods should be recognised when all of the following criteria have been satisfied IAS 18 14 the seller has transferred to the buyer the significant risks and rewards of ownership the seller retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold the amount of revenue can be measured reliably it is probable that the economic benefits associated with the transaction will flow to the seller and the costs incurred or to be incurred in respect of the transaction can be measured reliably Rendering of services For revenue arising from the rendering of services provided that all of the following criteria are met revenue should be recognised by reference to the stage of completion of the transaction at the balance sheet date the percentage of completion method IAS 18 20 the amount of revenue can be measured reliably it is probable

    Original URL path: http://www.iasplus.com/en/standards/ias/ias18 (2016-02-10)
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  • IAS 19 — Employee Benefits (1998) (superseded)
    disclosure for employee benefits that is all forms of consideration given by an entity in exchange for service rendered by employees The principle underlying all of the detailed requirements of the Standard is that the cost of providing employee benefits should be recognised in the period in which the benefit is earned by the employee rather than when it is paid or payable Scope IAS 19 1998 applies to among other kinds of employee benefits wages and salaries compensated absences paid vacation and sick leave profit sharing plans bonuses medical and life insurance benefits during employment housing benefits free or subsidised goods or services given to employees pension benefits post employment medical and life insurance benefits long service or sabbatical leave jubilee benefits deferred compensation programmes termination benefits IAS 19 1998 does not apply to employee benefits within the scope of IFRS 2 Share based Payment or the reporting by employee benefit plans see IAS 26 Accounting and Reporting by Retirement Benefit Plans Basic principle of IAS 19 1998 The cost of providing employee benefits should be recognised in the period in which the benefit is earned by the employee rather than when it is paid or payable Short term employee benefits For short term employee benefits those payable within 12 months after service is rendered such as wages paid vacation and sick leave bonuses and non monetary benefits such as medical care and housing the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period should be recognised in that period IAS 19 1998 10 The expected cost of short term compensated absences should be recognised as the employees render service that increases their entitlement or in the case of non accumulating absences when the absences occur IAS 19 1998 11 Profit sharing and bonus payments The entity should recognise the expected cost of profit sharing and bonus payments when and only when it has a legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the expected cost can be made IAS 19 1998 17 Types of post employment benefit plans The accounting treatment for a post employment benefit plan depends on whether the plan is a defined contribution plan or a defined benefit plan Under a defined contribution plan the entity pays fixed contributions into a fund but has no legal or constructive obligation to make further payments if the fund does not have sufficient assets to pay all of the employees entitlements to post employment benefits A defined benefit plan is a post employment benefit plan other than a defined contribution plan These would include both formal plans and those informal practices that create a constructive obligation to the entity s employees Defined contribution plans For defined contribution plans the cost to be recognised in the period is the contribution payable in exchange for service rendered by employees during the period IAS 19 1998 44 If contributions to a defined contribution plan do not fall due within 12 months after the end of the period in which the employee renders the service they are discounted to their present value IAS 19 1998 45 Defined benefit plans For defined benefit plans the amount recognised in the statement of financial position is the present value of the defined benefit obligation that is the present value of expected future payments required to settle the obligation resulting from employee service in the current and prior periods as adjusted for unrecognised actuarial gains and losses and unrecognised past service cost and reduced by the fair value of plan assets at the end of the reporting period IAS 19 1998 54 The present value of the defined benefit obligation should be determined using the Projected Unit Credit Method IAS 19 1998 64 Valuations should be carried out with sufficient regularity such that the amounts recognised in the financial statements do not differ materially from those that would be determined at the end of the reporting period IAS 19 1998 56 The assumptions used for the purposes of such valuations must be unbiased and mutually compatible IAS 19 1998 72 The rate used to discount estimated cash flows is determined by reference to market yields at the end of the reporting period on high quality corporate bonds or where there is no deep market in such bonds by reference to market yields on government bonds IAS 19 1998 78 On an ongoing basis actuarial gains and losses arise that comprise experience adjustments the effects of differences between the previous actuarial assumptions and what has actually occurred and the effects of changes in actuarial assumptions In the long term actuarial gains and losses may offset one another and as a result the entity is not required to recognise all such gains and losses in profit or loss immediately IAS 19 1998 specifies that if the accumulated unrecognised actuarial gains and losses exceed 10 of the greater of the defined benefit obligation or the fair value of plan assets a portion of that net gain or loss is required to be recognised immediately as income or expense The portion recognised is the excess divided by the expected average remaining working lives of the participating employees Actuarial gains and losses that do not breach the 10 limits described above the corridor need not be recognised although the entity may choose to do so IAS 19 1998 92 93 In December 2004 the IASB issued amendments to IAS 19 1998 to allow the option of recognising actuarial gains and losses in full in the period in which they occur outside profit or loss in other comprehensive income This option is similar to the requirements of the UK standard FRS 17 Retirement Benefits The Board concluded that pending further work on post employment benefits and on reporting comprehensive income the approach in FRS 17 should be available as an option to preparers of financial statements using IFRSs IAS 19 1998

    Original URL path: http://www.iasplus.com/en/standards/ias/ias19_1998 (2016-02-10)
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  • IAS 19 — Employee Benefits (2011)
    as houses cars and free or subsidised goods or services retirement benefits including pensions and lump sum payments post employment medical and life insurance benefits long service or sabbatical leave jubilee benefits deferred compensation programmes termination benefits IAS 19 2011 does not apply to employee benefits within the scope of IFRS 2 Share based Payment or the reporting by employee benefit plans see IAS 26 Accounting and Reporting by Retirement Benefit Plans Short term employee benefits Short term employee benefits are those expected to be settled wholly before twelve months after the end of the annual reporting period during which employee services are rendered but do not include termination benefits IAS 19 2011 8 Examples include wages salaries profit sharing and bonuses and non monetary benefits paid to current employees The undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in an accounting period is recognised in that period IAS 19 2011 11 The expected cost of short term compensated absences is recognised as the employees render service that increases their entitlement or in the case of non accumulating absences when the absences occur and includes any additional amounts an entity expects to pay as a result of unused entitlements at the end of the period IAS 19 2011 13 16 Profit sharing and bonus payments An entity recognises the expected cost of profit sharing and bonus payments when and only when it has a legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the expected obligation can be made IAS 19 19 Types of post employment benefit plans Post employment benefit plans are informal or formal arrangements where an entity provides post employment benefits to one or more employees e g retirement benefits pensions or lump sum payments life insurance and medical care The accounting treatment for a post employment benefit plan depends on the economic substance of the plan and results in the plan being classified as either a defined contribution plan or a defined benefit plan Defined contribution plans Under a defined contribution plan the entity pays fixed contributions into a fund but has no legal or constructive obligation to make further payments if the fund does not have sufficient assets to pay all of the employees entitlements to post employment benefits The entity s obligation is therefore effectively limited to the amount it agrees to contribute to the fund and effectively place actuarial and investment risk on the employee Defined benefit plans These are post employment benefit plans other than a defined contribution plans These plans create an obligation on the entity to provide agreed benefits to current and past employees and effectively places actuarial and investment risk on the entity Defined contribution plans For defined contribution plans the amount recognised in the period is the contribution payable in exchange for service rendered by employees during the period IAS 19 2011 51 Contributions to a defined contribution plan which are not expected to be wholly settled within 12 months after the end of the annual reporting period in which the employee renders the related service are discounted to their present value IAS 19 52 Defined benefit plans Basic requirements An entity is required to recognise the net defined benefit liability or asset in its statement of financial position IAS 19 2011 63 However the measurement of a net defined benefit asset is the lower of any surplus in the fund and the asset ceiling i e the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan IAS 19 2011 64 Measurement The measurement of a net defined benefit liability or assets requires the application of an actuarial valuation method the attribution of benefits to periods of service and the use of actuarial assumptions IAS 19 2011 66 The fair value of any plan assets is deducted from the present value of the defined benefit obligation in determining the net deficit or surplus IAS 19 2011 113 The determination of the net defined benefit liability or asset is carried out with sufficient regularity such that the amounts recognised in the financial statements do not differ materially from those that would be determined at end of the reporting period IAS 19 2011 58 The present value of an entity s defined benefit obligations and related service costs is determined using the projected unit credit method which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately in building up the final obligation IAS 19 2011 67 68 This requires an entity to attribute benefit to the current period to determine current service cost and the current and prior periods to determine the present value of defined benefit obligations Benefit is attributed to periods of service using the plan s benefit formula unless an employee s service in later years will lead to a materially higher of benefit than in earlier years in which case a straight line basis is used IAS 19 2011 70 Actuarial assumptions used in measurement The overall actuarial assumptions used must be unbiased and mutually compatible and represent the best estimate of the variables determining the ultimate post employment benefit cost IAS 19 2011 75 76 Financial assumptions must be based on market expectations at the end of the reporting period IAS 19 2011 80 Mortality assumptions are determined by reference to the best estimate of the mortality of plan members during and after employment IAS 19 2011 81 The discount rate used is determined by reference to market yields at the end of the reporting period on high quality corporate bonds or where there is no deep market in such bonds by reference to market yields on government bonds Currencies and terms of bond yields used must be consistent with the currency and estimated term of the obligation being discounted IAS 19

    Original URL path: http://www.iasplus.com/en/standards/ias/ias19 (2016-02-10)
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  • IAS 20 — Accounting for Government Grants and Disclosure of Government Assistance
    or deducting it from the carrying amount of the asset IAS 20 was issued in April 1983 and is applicable to annual periods beginning on or after 1 January 1984 History of IAS 20 September 1981 Exposure Draft E21 Accounting for Government Grants and Disclosure of Government Assistance April 1983 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 1 January 1984 Effective date of IAS 20 1983 1994 IAS 20 1983 was reformatted 22 May 2008 IAS 20 amended for Annual Improvements to IFRSs 2007 to bring it in line with IAS 39 in respect of loans with the below market rate of interest 1 January 2009 Effective date of May 2008 amendment to IAS 20 Related Interpretations SIC 10 Government Assistance No Specific Relation to Operating Activities Amendments under consideration by the IASB Government Grants Reconsideration of IAS 20 Emission Trading Schemes Summary of IAS 20 Objective of IAS 20 The objective of IAS 20 is to prescribe the accounting for and disclosure of government grants and other forms of government assistance Scope IAS 20 applies to all government grants and other forms of government assistance IAS 20 1 However it does not cover government assistance that is provided in the form of benefits in determining taxable income It does not cover government grants covered by IAS 41 Agriculture either IAS 20 2 The benefit of a government loan at a below market rate of interest is treated as a government grant IAS 20 10A Accounting for grants A government grant is recognised only when there is reasonable assurance that a the entity will comply with any conditions attached to the grant and b the grant will be received IAS 20 7 The grant is recognised as income over the period necessary to match them with the related costs for which they are intended to compensate on a systematic basis IAS 20 12 Non monetary grants such as land or other resources are usually accounted for at fair value although recording both the asset and the grant at a nominal amount is also permitted IAS 20 23 Even if there are no conditions attached to the assistance specifically relating to the operating activities of the entity other than the requirement to operate in certain regions or industry sectors such grants should not be credited to equity SIC 10 A grant receivable as compensation for costs already incurred or for immediate financial support with no future related costs should be recognised as income in the period in which it is receivable IAS 20 20 A grant relating to assets may be presented in one of two ways IAS 20 24 as deferred income or by deducting the grant from the asset s carrying amount A grant relating to income may be reported separately as other income or deducted from the related expense IAS 20 29 If a grant becomes repayable it should be treated as a change in estimate Where the original grant related to income the

    Original URL path: http://www.iasplus.com/en/standards/ias/ias20 (2016-02-10)
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  • IAS 21 — The Effects of Changes in Foreign Exchange Rates
    Foreign operation a subsidiary associate joint venture or branch whose activities are based in a country or currency other than that of the reporting entity Basic steps for translating foreign currency amounts into the functional currency Steps apply to a stand alone entity an entity with foreign operations such as a parent with foreign subsidiaries or a foreign operation such as a foreign subsidiary or branch 1 the reporting entity determines its functional currency 2 the entity translates all foreign currency items into its functional currency 3 the entity reports the effects of such translation in accordance with paragraphs 20 37 reporting foreign currency transactions in the functional currency and 50 reporting the tax effects of exchange differences Foreign currency transactions A foreign currency transaction should be recorded initially at the rate of exchange at the date of the transaction use of averages is permitted if they are a reasonable approximation of actual IAS 21 21 22 At each subsequent balance sheet date IAS 21 23 foreign currency monetary amounts should be reported using the closing rate non monetary items carried at historical cost should be reported using the exchange rate at the date of the transaction non monetary items carried at fair value should be reported at the rate that existed when the fair values were determined Exchange differences arising when monetary items are settled or when monetary items are translated at rates different from those at which they were translated when initially recognised or in previous financial statements are reported in profit or loss in the period with one exception IAS 21 28 The exception is that exchange differences arising on monetary items that form part of the reporting entity s net investment in a foreign operation are recognised in the consolidated financial statements that include the foreign operation in other comprehensive income they will be recognised in profit or loss on disposal of the net investment IAS 21 32 As regards a monetary item that forms part of an entity s investment in a foreign operation the accounting treatment in consolidated financial statements should not be dependent on the currency of the monetary item IAS 21 33 Also the accounting should not depend on which entity within the group conducts a transaction with the foreign operation IAS 21 15A If a gain or loss on a non monetary item is recognised in other comprehensive income for example a property revaluation under IAS 16 any foreign exchange component of that gain or loss is also recognised in other comprehensive income IAS 21 30 Translation from the functional currency to the presentation currency The results and financial position of an entity whose functional currency is not the currency of a hyperinflationary economy are translated into a different presentation currency using the following procedures IAS 21 39 assets and liabilities for each balance sheet presented including comparatives are translated at the closing rate at the date of that balance sheet This would include any goodwill arising on the acquisition of

    Original URL path: http://www.iasplus.com/en/standards/ias/ias21 (2016-02-10)
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  • IAS 22 — Business Combinations (Superseded)
    common shares for cash the enterprise paying the cash is the acquirer After the business combination the management of one enterprise dominates the selection of the management team of the combined enterprise Indications of a uniting of interests are IAS 22 13 An acquirer cannot be identified The shareholders of both combining enterprises share control over the combined enterprise substantially equally The managements of both of the combining enterprises share in the management of the combined entity A business combination should be classified as an acquisition unless the all of the following three characteristics are present Even if all three are present the combination should be presented as a uniting of interests only if the enterprise can demonstrate that an acquirer cannot be identified IAS 22 15 The substantial majority of the voting common shares of the combining enterprises are exchanged or pooled The fair value of one enterprise is not significantly different from that of the other enterprise Shareholders of each enterprise maintain substantially the same voting rights and interests in the combined entity relative to each other after the combination as before The following suggest that a business combination is not a uniting of interests IAS 22 16 Financial arrangements provide a relative advantage to one group of shareholders One party s share of the equity in the combined entity depends on the performance subsequent to the business combination of the business which it previously controlled Unitings of interests accounting procedures A uniting of interests should be accounted for using the pooling of interests method IAS 22 77 Under this method Financial statement items of uniting entities should be combined in both the current and prior periods as if they had been united from the beginning of the earliest period presented IAS 22 78 Any difference between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount recorded for the share capital acquired should be adjusted against equity IAS 22 79 The costs of the combination should be expensed when incurred IAS 22 82 Acquisitions accounting procedures An acquisition should be accounted for using the purchase method of accounting Under this method IAS 22 19 The income statement should incorporate the results of the acquiree from the date of acquisition and The balance sheet should include the identifiable assets and liabilities of the acquiree and any goodwill or negative goodwill arising Date of acquisition The date of acquisition is the date on which control of the net assets and operations of the acquiree is effectively transferred to the acquirer Goodwill is the difference between the cost of the acquisition and the acquiring enterprise s share of the fair values of the identifiable assets acquired less liabilities assumed IAS 22 20 Cost of acquisition The cost of the acquisition is the amount of cash paid and the fair value of the other consideration given by the acquirer plus any costs directly attributable to the acquisition Contingent consideration should be included in the cost of the acquisition at the date of the acquisition if payment of the amount is probable and it can be measured reliably The cost of acquisition should be adjusted when a relevant contingency is resolved When settlement of the consideration is deferred the cost is the present value of such consideration and not the nominal amount IAS 22 21 Identifiable assets and liabilities The identifiable assets and liabilities acquired that are recognised should be those of the acquiree that existed at the date of acquisition some of which may not have been recognised by the acquiree together with any permitted provisions for restructuring costs see below They should be recognised separately if it is probable that any associated future economic benefits will flow to or from the acquirer and their cost fair value can be measured reliably Other than permitted provisions for restructuring costs see below liabilities should not be recognised at the date of acquisition if they result from either the acquirer s intentions or actions or future losses or other costs expected to be incurred an a result of the acquisition Restructuring provisions Liabilities should not be recognised at the date of acquisition based on the acquirer s stated intentions Liabilities should also not be recognised for future losses or other costs expected to be incurred as a result of the acquisition whether they relate to the acquirer or the acquiree IAS 22 29 Restructuring provisions are recognised at acquisition only if the restructuring is an integral part of the acquirer s plan for the acquisition and among other things the main features of the restructuring plan were announced at or before the date of acquisition The restructuring must involve terminating or reducing the acquired company s activities Furthermore even if the main features of a restructuring plan were announced prior to the acquisition a provision for the restructuring sill should not be accrued unless by the earlier of three months after the date of acquisition and the date when the annual financial statements are authorised for issue the restructuring plan has been further developed into a detailed formal plan specifics set out in IAS 22 31 Measuring acquired assets and liabilities Individual assets and liabilities should be recognised separately as at the date of acquisition when it is probable that any associated future economic benefits will flow to or from the acquirer and their cost fair value can be measured reliably IAS 22 26 IAS 22 provides for benchmark and an allowed alternative treatments for measuring the acquired assets and liabilities Under the benchmark treatment the assets and liabilities are measured at the aggregate of the fair value of the identifiable assets and liabilities acquired to the extent of the acquirer s interest obtained and the minority s proportion of the pre acquisition carrying amounts of the assets and liabilities IAS 22 32 Under the allowed alternative treatment the assets and liabilities should be measured at their fair values as at

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  • IAS 23 — Borrowing Costs
    March 2007 and applies to annual periods beginning on or after 1 January 2009 History of IAS 23 November 1982 Exposure Draft E24 Capitalisation of Borrowing Costs March 1984 IAS 23 Capitalisation of Borrowing Costs 1 January 1986 Effective date of IAS 23 1984 August 1991 Exposure Draft E39 Capitalisation of Borrowing Costs December 1993 IAS 23 1993 Borrowing Costs revised as part of the Comparability of Financial Statements project 1 January 1995 Effective date of IAS 23 1993 Borrowing Costs 25 May 2006 Exposure Draft of proposed amendments to IAS 23 29 March 2007 IASB amends IAS 23 to require capitalisation of borrowing costs 22 May 2008 IAS 23 amended for Annual Improvements to IFRSs 2007 for components of borrowing costs 1 January 2009 Effective date of March 2007 and May 2008 amendments to IAS 23 Related Interpretations SIC 2 Consistency Capitalisation of Borrowing Costs SIC 2 was superseded by and incorporated into IAS 8 in December 2003 Amendments under consideration by the IASB Annual improvements 2015 2017 cycle Summary of IAS 23 Objective of IAS 23 The objective of IAS 23 is to prescribe the accounting treatment for borrowing costs Borrowing costs include interest on bank overdrafts and borrowings finance charges on finance leases and exchange differences on foreign currency borrowings where they are regarded as an adjustment to interest costs Key definitions Borrowing cost may include IAS 23 6 interest expense calculated by the effective interest method under IAS 39 finance charges in respect of finance leases recognised in accordance with IAS 17 Leases and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs This standard does not deal with the actual or imputed cost of equity including any preferred capital not classified as a liability pursuant to IAS 32 IAS 23 3 A qualifying asset is an asset that takes a substantial period of time to get ready for its intended use or sale IAS 23 5 That could be property plant and equipment and investment property during the construction period intangible assets during the development period or made to order inventories IAS 23 6 Scope of IAS 23 Two types of assets that would otherwise be qualifying assets are excluded from the scope of IAS 23 qualifying assets measured at fair value such as biological assets accounted for under IAS 41 Agriculture inventories that are manufactured or otherwise produced in large quantities on a repetitive basis and that take a substantial period to get ready for sale for example maturing whisky Accounting treatment Recognition Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset form part of the cost of that asset and therefore should be capitalised Other borrowing costs are recognised as an expense IAS 23 8 Measurement Where funds are borrowed specifically costs eligible for capitalisation are the actual costs incurred less any income earned on the temporary investment of such borrowings IAS 23 12 Where

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  • IAS 24 — Related Party Disclosures
    family is related to a reporting entity if that person i has control or joint control over the reporting entity ii has significant influence over the reporting entity or iii is a member of the key management personnel of the reporting entity or of a parent of the reporting entity b An entity is related to a reporting entity if any of the following conditions applies i The entity and the reporting entity are members of the same group which means that each parent subsidiary and fellow subsidiary is related to the others ii One entity is an associate or joint venture of the other entity or an associate or joint venture of a member of a group of which the other entity is a member iii Both entities are joint ventures of the same third party iv One entity is a joint venture of a third entity and the other entity is an associate of the third entity v The entity is a post employment defined benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity If the reporting entity is itself such a plan the sponsoring employers are also related to the reporting entity vi The entity is controlled or jointly controlled by a person identified in a vii A person identified in a i has significant influence over the entity or is a member of the key management personnel of the entity or of a parent of the entity viii The entity or any member of a group of which it is a part provides key management personnel services to the reporting entity or to the parent of the reporting entity Requirement added by Annual Improvements to IFRSs 2010 2012 Cycle effective for annual periods beginning on or after 1 July 2014 The following are deemed not to be related IAS 24 11 two entities simply because they have a director or key manager in common two venturers who share joint control over a joint venture providers of finance trade unions public utilities and departments and agencies of a government that does not control jointly control or significantly influence the reporting entity simply by virtue of their normal dealings with an entity even though they may affect the freedom of action of an entity or participate in its decision making process a single customer supplier franchiser distributor or general agent with whom an entity transacts a significant volume of business merely by virtue of the resulting economic dependence What are related party transactions A related party transaction is a transfer of resources services or obligations between related parties regardless of whether a price is charged IAS 24 9 Disclosure Relationships between parents and subsidiaries Regardless of whether there have been transactions between a parent and a subsidiary an entity must disclose the name of its parent and if different the ultimate controlling party If neither the entity s parent nor the ultimate controlling party produces financial statements

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