1 / 8

FRS 124 Related Party (“RP”) Disclosures

FRS 124 Related Party (“RP”) Disclosures. Introduction : Transaction between RP are frequent occurrences in the normal course of business FRS 124 is applicable to the separate financial statements of a parent, venturer or investor presented in accordance with FRS 127. 1.RP Relationship (“RPR”).

otylia
Download Presentation

FRS 124 Related Party (“RP”) Disclosures

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FRS 124 Related Party (“RP”) Disclosures Introduction: • Transaction between RP are frequent occurrences in the normal course of business • FRS 124 is applicable to the separate financial statements of a parent, venturer or investor presented in accordance with FRS 127

  2. 1.RP Relationship (“RPR”) • A party is related to an entity if (para 9): • -The party controls, is controlled by, or is under common control with the entity • -The party is associate • -The party is a JV in which the entity is a venturer • -The party is a member of the key management personnel (CEO and director) of the entity or its parent • -The party is an entity that is controlled, joint controlled or significantly influenced by a member of the key management personnel (“KMP”) • -The party is a post-employment benefit plan for the benefit of employee of the entity

  3. Para 11 specifically excluded the following which are not necessarily RP: • 2 entities simply because they have a director or other member of KMP in common • 2 venturers simply because they share joint control over a JV • Provider of finance, trade union, public utilities, and government departments and agencies;and • A customer, supplier, franchiser, distributor or general agent with whom a an entity transacts a significant volume of business, merely by virtue of the resulting economic dependence

  4. 2 RP Transaction (“RPT”) • FRS 124 defines RPT as “ a transfer of resources, services or obligation between RP, regardless of whether a price is charged” • Pls provide some example

  5. 3 Disclosure • A RPR may have an effect on the financial position and operating results of the reporting entity • Disclosure requirement of RPR and RPT can be summarised into 3 parts • (a) Disclosure of control (para 12) • Disclose the name of its parent and, if different, the ultimate controlling party, regardless of whether there have been transaction

  6. (b) Disclosure of KMP compensation (Para 16) • An entity shall disclose in total and for each of the following categories: • -short term employee benefits • -post employment benefits • -other long-term benefits • -termination benefits; and • -share-based payment

  7. (c) Disclosures of transaction and balances (para 17) • If there have been transaction between RP, an entity should disclose: • - the amount of the transaction • - the amount of the outstanding balances • - provision for doubtful debts related to the amount of outstanding balances • - the expense expense recognised during the period in respect of bad or doubtful debts due from RP

  8. The disclosure as per para 17 shall be made separately for: • -parent • -entities with joint control or significant influence over the entity • -subsidiaries • -associates • -JV • -KMP of the entity or its parent; and • -other RP

More Related