IASB has revised IAS 24 to provide a partial exemption from the disclosure requirements for government-related entities and to clarify the definition of a related party. When transactions are individually or collectively significant info is required.
The IASB issued a revised version of IAS 24 Related Party Disclosures that simplifies the disclosure requirements for government-related entities and clarifies the definition of a related party.
The revised standard is effective for annual periods beginning on or after 1 January 2011, with earlier application permitted.
The revised standard addresses these concerns by:
Ø Providing a partial exemption for government-related entities. The revised standard still requires disclosures that are important to users of financial statements but eliminates requirements to disclose information that is costly to gather and of less value to users. It achieves this balance by requiring disclosure about these transactions only if they are individually or collectively significant.
Ø Providing a revised definition of a related party.
© IASB - International Accounting Standards Board
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