This free, guided checker walks your finance team through the key decision points for IAS 24 Related Party Identification and Disclosures. Answer a few questions to see the likely treatment and the evidence to document.
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This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
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Work through the IAS 24.9 definition from both directions: persons (and their close family) who control, jointly control, or significantly influence the entity or are key management personnel, and entities linked through the group, associates, joint ventures, common control, or a post-employment benefit plan. Test control and significant influence in substance, not just legal form, and remember that two entities are not related merely because they share a director or transact with a common customer, supplier, or financier (IAS 24.11). Close family includes children, spouse or domestic partner, dependants, and the partner's children (IAS 24.9).
No IAS 24 related party disclosure package is required because no related party relationship exists (IAS 24.9); monitor registers and board composition for changes before authorization.
Official guidance: IFRS issued standards
Identify whether a government (national, state, local, or supranational) or a government agency controls, jointly controls, or significantly influences the entity; if so, the IAS 24.25 partial exemption may relieve it from the detailed IAS 24.18 disclosures for transactions with that government and with other entities under the same government. The relief is partial, not total: the entity must still disclose the government relationship and provide the substitute IAS 24.26 information. Confirm the source of control before relying on the exemption, because ordinary regulation of an entity does not by itself make the regulator a related party.
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Official guidance: IFRS issued standards
A related party transaction is any transfer of resources, services, or obligations, whether or not a price is charged (IAS 24.9), so screen management charges, funding, guarantees, licensing, leases, and cost allocations, not only trade sales and purchases. Review the general ledger, intercompany accounts, board minutes, and the related party register across the full period. The common trap is overlooking non-priced transfers such as free-of-charge guarantees, interest-free loans, and services provided without recharge.
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Official guidance: IFRS issued standards
An equivalent-terms (arm's length) statement may be made only when the equivalence can be substantiated (IAS 24.23), so hold the assertion to evidence such as comparable third-party pricing, benchmarking, or a transfer-pricing study. Disclosure of the nature of the relationship and of the transaction terms is required even when pricing is at arm's length, because the relationship itself may influence terms or outcomes (IAS 24.21). The trap is asserting arm's length by default; where it cannot be substantiated, disclose the actual terms without the equivalence statement (IAS 24.18(b)).
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Official guidance: IFRS issued standards
Assess materiality both individually and in aggregate by IAS 24.19 category (parent, entities with joint control or significant influence, subsidiaries, associates, joint ventures, key management personnel, and other related parties), weighing qualitative factors because a related party transaction can be material by its nature even when the amount is small. Where transactions are material, disclose the nature of the relationship, the transaction amount, outstanding balances and their terms, guarantees given or received, and any doubtful-debt provision and expense (IAS 24.18). The trap is netting or aggregating across categories in a way that conceals an individually significant item.
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Official guidance: IFRS issued standards
Key management personnel are the persons with authority and responsibility for planning, directing, and controlling the entity, directly or indirectly, including all directors whether executive or not (IAS 24.9). Compile compensation from payroll, benefit plans, and share-based payment records for every person who held the role during the period, not only those in office at year end. Where key management personnel services are provided by a separate management entity, disclose the amounts the entity incurs for those services rather than the management entity's own compensation of its personnel (IAS 24.17A; IAS 24.18A).
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Official guidance: IFRS issued standards
IAS 24.17 requires the total compensation of key management personnel and the amount for each of the five categories: short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits, and share-based payment. Aggregate disclosure by category satisfies IAS 24; per-person or named disclosure is not required by the standard itself. The trap is omitting a category such as share-based payment or post-employment cost, or presenting a single total without the category split.
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Official guidance: IFRS issued standards
Outstanding balances include trade receivables and payables, loans, funding, and any commitments or guarantees that remain unsettled at the reporting date. For each, IAS 24.18(b) requires disclosure of the amount, the terms and conditions including whether they are secured, and the nature of the consideration for settlement. The trap is disclosing only the balance while omitting the terms, the security, and any commitment to provide future funding.
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Official guidance: IFRS issued standards
Related party status does not remove the IFRS 9 expected credit loss requirements, so assess recoverability of related party receivables on the same evidence you would apply to third-party balances, considering the counterparty's ability and willingness to pay. IAS 24.18(c) requires disclosure of any provision for doubtful debts on outstanding related party balances, and IAS 24.18(d) requires the expense recognized in the period for bad or doubtful debts due from related parties. The trap is presuming full recoverability simply because the debtor is within the group.
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Official guidance: IFRS issued standards
When the IAS 24.25 exemption is elected, the entity is relieved from naming the government and other government-related counterparties, but it must instead disclose the name of the government and the nature of its relationship, the nature and amount of each individually significant transaction, and a qualitative or quantitative indication of the extent of other collectively significant transactions (IAS 24.26). Gather the data needed for those substitute disclosures before relying on the relief. The trap is treating the exemption as removing all disclosure rather than substituting a reduced package.
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Official guidance: IFRS issued standards
Check the applicable securities law, listing rules, and companies legislation, because these often require named disclosure of controlling shareholders, directors, or individually significant transactions that goes beyond the IAS 24.18-24 minimum, even where IAS 24 aggregate or government-related relief would otherwise apply. Reconcile the IFRS note to those additional requirements and prepare the supplemental named-party content. The trap is assuming IAS 24 relief overrides a stricter local disclosure rule; the more extensive requirement governs the filed statements.
Prepare the IAS 24.18-24 disclosures plus the supplemental regulatory or listing named-party note content (IAS 24.25 minimum). Prepare the IAS 24 related party note using the applicable government-related or named-party approach under IAS 24.18-24.
Official guidance: IFRS issued standards
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