10 paragraphs found in AD-AASB 124 [4-17]
The objective of AASB 124 is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties …
The AASB observed that AASB 101 Presentation of Financial Statements contemplates that an entity need not provide a specific disclosure required by an Australian Accounting Standard if the information resulting from that disclosure is not material; that …
The Board observed when preparing general purpose financial statements, a preparer is likely to first identify the types of related party transactions that may have occurred; then assess, of that population, the types of transactions that: · …
A not-for-profit public sector entity then applies judgement in determining the extent of information it needs to collect to meet the objective of AASB 124. As noted in AASB 2015-6 paragraph BC17, the Board considers there is little value in an entity …
The Board observed that AASB 124 paragraphs IG9 and IG11 indicate that the following criteria are relevant when assessing materiality for disclosing transactions between an entity and its KMP related parties: (a) the potential effect of the …
The Board also noted that, when establishing the significance of a transaction, other relevant factors to consider outlined in AASB 124 paragraph 27 are whether it is: (a) significant in terms of size; (b) outside normal day-to-day …
The key assessment is whether knowledge of the relationship and terms and conditions could influence a user’s understanding of the impact on the financial statements. Where the impact on the financial statements is not material the transaction is not …
For example, the materiality assessment applied to a transaction with a KMP related party that has been through the entity’s procurement processes which require several independent quotes to be obtained is unlikely to differ to that which would apply to …
The Board thinks that existing guidance in Australian Accounting Standards is sufficient to address the issue of whether a transaction with a KMP related party that did not occur as part of a public services provider/taxpayer relationship is always …
In March 2015, the AASB issued AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities , extending the scope of AASB 124 Related Party Disclosures to include application by …