Disclosure retained with the exemption

Learning objectives

• Prepare the disclosures required when the exemption is applied (name of the government, nature of the relationship, individually or collectively significant transactions).L2, L3
• Calculate the share of sales and purchases with the government and its related entities for a collective indication.L2, L3

Normative references

• IAS 24 §26When it applies the exemption in para. 25, the entity discloses, about the transactions and balances referred to in that paragraph (those exempted from para. 18): (a) the name of the government and the nature of its relationship with the entity (control, joint control or significant influence); (b) in sufficient detail to enable users to understand the effect of those transactions on its financial statements: (i) the nature and amount of each individually significant transaction; (ii) for other transactions that are collectively, but not individually, significant, a qualitative or quantitative indication of their extent; types of transactions include those listed in para. 21.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• Orme SA, controlled by the government, made total sales of {total_transactions}, of which {transactions_with_gov_group} with the government and the entities it controls. It applies the partial exemption and wants to give an indication of the extent of these sales. Calculate the proportion of sales made with the government and its entities.L2
• An entity controlled by the government applies the partial exemption. Which disclosures must it nevertheless provide? More than one answer is possible.L3
• Cèdre Énergie, controlled by the government, made total purchases of {total_transactions}, of which 15,000,000 from an independent private supplier. Purchases from the government (12,000,000) and from another entity it controls (8,000,000) total {transactions_with_gov_group}. Calculate the proportion of purchases made with the government and its entities, to be disclosed as the extent of these transactions.L3