IAS 24 · Workpapers (Step 4 of 5)
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Key management personnel compensation note: total, categories, management entity and other balances
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- AI-assisted draft
- Reviewed by
- Not reviewed — human review required
- Status
- Published
Objective of the workpaper
List the key management personnel, enter the compensation of the period for each of the five categories, compute the total, examine whether services are obtained from a management entity (judgement, no threshold imposed) and then disclose the amounts incurred, then identify the other transactions and balances with key management. Amounts are case data.
10 sections · 20 blocks · 1 calculation · 1 entry
- IAS 24 §9
- IAS 24 §17
- IAS 24 §17A
- IAS 24 §18
- IAS 24 §18A
Work this workpaper as a mission
Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.
- Key management personnel compensation by category, management entity services and a loan to a managerOpen the mission
- Group file: close family, entities controlled by a manager, post-employment plan, management entity, arm's length, aggregation and public fundOpen the mission
- Related party file of a group: mapping, key management compensation, transactions and balances, State (IAS 24)Open the mission
3 instances from the cases: the calculations and entries below are run by the calculation engine.
- File and entity
- Key management personnel compensation by category, management entity services and a loan to a manager
- Case tasks documented here
- Who is a member of the key management personnel and what is the relationship with Gestion Altimar SAS?
- Compute the total compensation of the three employed managers as the sum of the five categories.
- How should the 150,000 EUR invoiced by the management entity be treated and what must be disclosed?
- Record the short-term compensation expense payable.
Facts and data
InputsList of key management personnel (authority and responsibility for planning, directing and controlling)
Text
THREE_EMPLOYEES_AND_MANAGEMENT_ENTITY_DIRECTOR
Short-term employee benefits
Number
640,000
Post-employment benefits
Number
85,000
Other long-term benefits
Number
30,000
Termination benefits
Number
45,000
Share-based payment
Number
120,000
Facts about the management entity: services provided and contract
Text
Amounts incurred with the management entity for those services
Number
150,000
Other transactions and balances with key management (loans, guarantees, terms)
Text
Supporting evidence
EvidenceEvidence obtained and referenced (list of key management, contracts, compensation statements)
EvidenceRequired
Analysis of key management personnel
AnalysisIAS 24 §9IAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points reviewed: key management personnel
ChecklistRequired
- Persons with authority and responsibility for planning, directing and controlling the activities, directors included
- Total and five categories of compensation covered
- Services obtained from a management entity: amounts incurred disclosed instead of the breakdown of its own staff pay
- Other transactions and balances with key management identified
Total compensation
CalculationsIAS 24 §17
Total compensation of key management personnel (sum of the five categories)
CalculationRequired
920,000
Short-term employee benefits ; Post-employment benefits ; Other long-term benefits ; Termination benefits ; Share-based payment
Illustrative entries
EntriesEntry: short-term compensation expense payable
Entry
Account Debit Credit Key management compensation expense 640,000 Key management benefits payable 640,000
Judgement on the management entity
JudgmentIAS 24 §9IAS 24 §17A
Reading of the situation
JudgmentRequired
Services obtained from a management entity
Services obtained from a management entity / Key management engaged directly by the entity
Professional judgement: the use of a management entity is assessed on the contracts and documented facts; the pay that the management entity gives its own staff is not broken down by category, but the amounts incurred with it are disclosed.
Rationale: facts relied on, analysis, alternative rejected
Text
CONTRACT_FEES_FOR_DIRECTOR_SERVICES
Effect on the financial statements
FS impactEffect derived from the entries
Table
Disclosures about key management
DisclosureIAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points to complete
ChecklistRequired
- Total and each of the five categories
- Amounts incurred for the management entity services
- Nature of the relationship, amounts of transactions and balances
- Terms, security and guarantees attached to the balances
- Information given separately for the key management personnel category
Draft note on key management compensation
Text
Conclusion
ConclusionCompensation, judgement on the management entity, entry and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status)
References
Checks and financial statement impact
- Judgement documentedPass
- Rationale writtenPass
- Assets
- 0
- Liabilities
- 640,000
- Profit or loss
- -640,000
- OCI
- 0
- Equity
- -640,000
- File and entity
- Group file: close family, entities controlled by a manager, post-employment plan, management entity, arm's length, aggregation and public fund
- Case task documented here
- What amount to disclose for the management entity services?
Facts and data
InputsList of key management personnel (authority and responsibility for planning, directing and controlling)
Text
Short-term employee benefits
Number
Post-employment benefits
Number
Other long-term benefits
Number
Termination benefits
Number
Share-based payment
Number
Facts about the management entity: services provided and contract
Text
Amounts incurred with the management entity for those services
Number
180,000
Other transactions and balances with key management (loans, guarantees, terms)
Text
Supporting evidence
EvidenceEvidence obtained and referenced (list of key management, contracts, compensation statements)
EvidenceRequired
Analysis of key management personnel
AnalysisIAS 24 §9IAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points reviewed: key management personnel
ChecklistRequired
- Persons with authority and responsibility for planning, directing and controlling the activities, directors included
- Total and five categories of compensation covered
- Services obtained from a management entity: amounts incurred disclosed instead of the breakdown of its own staff pay
- Other transactions and balances with key management identified
Total compensation
CalculationsIAS 24 §17
Total compensation of key management personnel (sum of the five categories)
CalculationRequired
0
Short-term employee benefits ; Post-employment benefits ; Other long-term benefits ; Termination benefits ; Share-based payment
Illustrative entries
EntriesEntry: short-term compensation expense payable
Entry
Debit Key management compensation expense ← Short-term employee benefits ; Credit Key management benefits payable ← Short-term employee benefits
Judgement on the management entity
JudgmentIAS 24 §9IAS 24 §17A
Reading of the situation
JudgmentRequired
Services obtained from a management entity
Services obtained from a management entity / Key management engaged directly by the entity
Professional judgement: the use of a management entity is assessed on the contracts and documented facts; the pay that the management entity gives its own staff is not broken down by category, but the amounts incurred with it are disclosed.
Rationale: facts relied on, analysis, alternative rejected
Text
CFO_SERVICES_UNDER_SERVICE_CONTRACT
Effect on the financial statements
FS impactEffect derived from the entries
Table
Disclosures about key management
DisclosureIAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points to complete
ChecklistRequired
- Total and each of the five categories
- Amounts incurred for the management entity services
- Nature of the relationship, amounts of transactions and balances
- Terms, security and guarantees attached to the balances
- Information given separately for the key management personnel category
Draft note on key management compensation
Text
Conclusion
ConclusionCompensation, judgement on the management entity, entry and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status)
References
Checks and financial statement impact
- Judgement documentedPass
- Rationale writtenPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Related party file of a group: mapping, key management compensation, transactions and balances, State (IAS 24)
- Case tasks documented here
- Compute the total compensation of the employed managers as the sum of the five categories.
- How to treat the services of Gestion Ardenne SAS and what amount to disclose?
- Record the short-term compensation expense payable.
Facts and data
InputsList of key management personnel (authority and responsibility for planning, directing and controlling)
Text
THREE_EMPLOYEES_AND_MANAGEMENT_ENTITY_CFO
Short-term employee benefits
Number
520,000
Post-employment benefits
Number
70,000
Other long-term benefits
Number
25,000
Termination benefits
Number
30,000
Share-based payment
Number
95,000
Facts about the management entity: services provided and contract
Text
Amounts incurred with the management entity for those services
Number
210,000
Other transactions and balances with key management (loans, guarantees, terms)
Text
Supporting evidence
EvidenceEvidence obtained and referenced (list of key management, contracts, compensation statements)
EvidenceRequired
Analysis of key management personnel
AnalysisIAS 24 §9IAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points reviewed: key management personnel
ChecklistRequired
- Persons with authority and responsibility for planning, directing and controlling the activities, directors included
- Total and five categories of compensation covered
- Services obtained from a management entity: amounts incurred disclosed instead of the breakdown of its own staff pay
- Other transactions and balances with key management identified
Total compensation
CalculationsIAS 24 §17
Total compensation of key management personnel (sum of the five categories)
CalculationRequired
740,000
Short-term employee benefits ; Post-employment benefits ; Other long-term benefits ; Termination benefits ; Share-based payment
Illustrative entries
EntriesEntry: short-term compensation expense payable
Entry
Account Debit Credit Key management compensation expense 520,000 Key management benefits payable 520,000
Judgement on the management entity
JudgmentIAS 24 §9IAS 24 §17A
Reading of the situation
JudgmentRequired
Services obtained from a management entity
Services obtained from a management entity / Key management engaged directly by the entity
Professional judgement: the use of a management entity is assessed on the contracts and documented facts; the pay that the management entity gives its own staff is not broken down by category, but the amounts incurred with it are disclosed.
Rationale: facts relied on, analysis, alternative rejected
Text
CFO_SERVICES_UNDER_SERVICE_CONTRACT
Effect on the financial statements
FS impactEffect derived from the entries
Table
Disclosures about key management
DisclosureIAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points to complete
ChecklistRequired
- Total and each of the five categories
- Amounts incurred for the management entity services
- Nature of the relationship, amounts of transactions and balances
- Terms, security and guarantees attached to the balances
- Information given separately for the key management personnel category
Draft note on key management compensation
Text
Conclusion
ConclusionCompensation, judgement on the management entity, entry and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status)
References
Checks and financial statement impact
- Judgement documentedPass
- Rationale writtenPass
- Assets
- 0
- Liabilities
- 520,000
- Profit or loss
- -520,000
- OCI
- 0
- Equity
- -520,000
Facts and data
InputsList of key management personnel (authority and responsibility for planning, directing and controlling)
Text
Short-term employee benefits
Number
Post-employment benefits
Number
Other long-term benefits
Number
Termination benefits
Number
Share-based payment
Number
Facts about the management entity: services provided and contract
Text
Amounts incurred with the management entity for those services
Number
Other transactions and balances with key management (loans, guarantees, terms)
Text
Supporting evidence
EvidenceEvidence obtained and referenced (list of key management, contracts, compensation statements)
EvidenceRequired
Analysis of key management personnel
AnalysisIAS 24 §9IAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points reviewed: key management personnel
ChecklistRequired
- Persons with authority and responsibility for planning, directing and controlling the activities, directors included
- Total and five categories of compensation covered
- Services obtained from a management entity: amounts incurred disclosed instead of the breakdown of its own staff pay
- Other transactions and balances with key management identified
Total compensation
CalculationsIAS 24 §17
Total compensation of key management personnel (sum of the five categories)
CalculationRequired
Short-term employee benefits ; Post-employment benefits ; Other long-term benefits ; Termination benefits ; Share-based payment
Illustrative entries
EntriesEntry: short-term compensation expense payable
Entry
Debit Key management compensation expense ← Short-term employee benefits ; Credit Key management benefits payable ← Short-term employee benefits
Judgement on the management entity
JudgmentIAS 24 §9IAS 24 §17A
Reading of the situation
JudgmentRequired
Services obtained from a management entity / Key management engaged directly by the entity
Professional judgement: the use of a management entity is assessed on the contracts and documented facts; the pay that the management entity gives its own staff is not broken down by category, but the amounts incurred with it are disclosed.
Rationale: facts relied on, analysis, alternative rejected
Text
Effect on the financial statements
FS impactEffect derived from the entries
Table
Disclosures about key management
DisclosureIAS 24 §17IAS 24 §17AIAS 24 §18IAS 24 §18A
Points to complete
ChecklistRequired
- Total and each of the five categories
- Amounts incurred for the management entity services
- Nature of the relationship, amounts of transactions and balances
- Terms, security and guarantees attached to the balances
- Information given separately for the key management personnel category
Draft note on key management compensation
Text
Conclusion
ConclusionCompensation, judgement on the management entity, entry and note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper (verification status)
References