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IAS 24Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIAS 24 — Related Party DisclosuresL2 · L3 · L4

State-related entity exemption check: scope, limits, disclosure kept and extent

5 missions8 sections to document40 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Identify the relationship of the State with the entity and the entities related through the same State, check the limits of the exemption (natural persons, ordinary dealings), compute the transactions of the State group from the proportion given by the case, assess the extent of the disclosure to keep (judgement, no threshold imposed), then prepare the note.

8 sections · 15 blocks · 1 calculation · 0 entries

  • IAS 24 §11
  • IAS 24 §25
  • IAS 24 §26
  • IAS 24 §27

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.

5 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
State-related entity: partial exemption, transaction with a State entity, loan to a manager and disclosure kept
Case tasks documented here
  • Does the exemption apply and to which entities?
  • Which relationships are not covered by the exemption or are not related parties?
  • Compute the sales made with the State and its entities from the proportion given.
  • Which disclosure to keep: individual or collective? Justify.
1

Facts and data

Inputs

  • Name of the State (or authority) and relationship with the entity

    Text

    REPUBLIC_OF_VALDORIA_CONTROL

  • Relationship of the State with the entity

    Choice

    Control

    Control / Joint control / Significant influence / Ordinary dealings only

  • Total transactions of the period (sales or purchases) used as the base of the indication

    Number

    1,900,000

  • Proportion of those transactions made with the State and its related entities (case data)

    Number

    40 %

  • Individually significant transaction with a State-related entity

    Number

  • Transactions or balances with related natural persons (key management, close family)

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (articles, sales ledger, contracts)

    EvidenceRequired

3

Analysis of the exemption

Analysis

IAS 24 §11IAS 24 §25

  • Points reviewed: scope and limits

    ChecklistRequired

    • A State has control, joint control or significant influence over the entity
    • Other entity related because the same State has control, joint control or significant influence over both
    • Natural persons (key management, close family) outside the scope of the exemption
    • Ordinary dealings with a government body without control or influence: not related parties
4

Share of transactions with the State group

Calculations

IAS 24 §26

  • Transactions with the State and its related entities (base × proportion)

    CalculationRequired

    760,000

    Total transactions of the period (sales or purchases) used as the base of the indication ; Proportion of those transactions made with the State and its related entities (case data)

5

Judgement on the extent of disclosure

Judgment

IAS 24 §25IAS 24 §26

  • Extent of disclosure

    JudgmentRequired

    Collective indication sufficient

    Individual disclosure needed / Collective indication sufficient

    Professional judgement: the extent of disclosure is assessed on the criteria of the standard (closeness of the relationship, factors showing how significant the transaction is: size, non-market terms, operation outside the normal course of business, disclosure to regulators, reporting to senior management, shareholder approval; IAS 24, para. 27), without a numeric threshold; the proportions in the illustrative examples are illustrations, never thresholds.

  • Rationale (criteria of the standard, para. 27): closeness of the relationship and significance of the transactions

    Text

    COLLECTIVE_SALES_WITH_STATE_GROUP

6

Disclosure kept despite the exemption

Disclosure

IAS 24 §25IAS 24 §26

  • Points to complete

    ChecklistRequired

    • Name of the State and nature of the relationship
    • Nature and amount of each individually significant transaction
    • Qualitative or quantitative indication of the extent of the other collectively significant transactions
    • Transactions with natural persons still disclosed

  • Draft note on State-related entities

    Text

7

Conclusion

Conclusion

  • Application of the exemption, limits, extent and note submitted to the reviewer

    ConclusionRequired

8

Normative references

References

  • Paragraphs cited in this workpaper (verification status)

    References

9

Checks and financial statement impact

  • Judgement documentedPass
  • Rationale writtenPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0