Related party identification map: persons, entities, exclusions, substance and parent

Context

Cobaltex Industrie SA (fictitious entity) closes its books on 31 December 20X5. It is controlled by Cobaltex Holding SA, holds the whole capital of Cobaltex Services SAS and has significant influence over Brisaval SA. Ms Irène Lavoie is a director and the chief executive of the entity; her spouse, Mr Paul Lavoie, is an independent consultant. Ms Lavoie also sits on the board of Ateliers Morin SARL, which has no control relationship with the entity, and the entity has bought for several years most of its materials from Metalor SA. The accounting department draws up the map of related parties before preparing the notes.

Assignment

Related party identification map

Purpose of the workpaper

Describe the group structure and the facts about persons (key management, close family), enter each relationship examined in the map with its category and basis, review the links and the exclusions, justify the assessment of substance (professional judgement, no threshold imposed), then name the parent and the ultimate controlling party.

Questions of the file covered by this workpaper

• Among the parent, the subsidiary and the associate, which are related parties of the entity and why?
• Are Ms Lavoie and Mr Lavoie related parties? On what basis?
• Are Ateliers Morin SARL and Metalor SA related parties? Justify.
• Draw up the map: number of related parties retained and number of parties excluded.

• ScheduleOrganisation chart and holdingsOpen
• MemoRegister of key managers and their relativesOpen
• MinutesStatement of other linksOpen
• InvoiceSales invoice to Brisaval SAOpen
• MemoInsurance premiumOpen