Partial exemption for government-related entities

Learning objectives

• Determine whether a transaction falls within the exemption (a government that controls or influences the entity, or an entity related through the same government).L1, L2, L3

Normative references

• IAS 24 §25Partial exemption: the entity is exempt from the disclosure requirements of para. 18 in relation to transactions and outstanding balances, including commitments, with (a) a government that has control or joint control of, or significant influence over, the entity, and (b) another entity that is a related party because the same government has control or joint control of, or significant influence over, both entities. The exemption covers only these two categories: transactions with other related parties, for example a member of key management personnel, remain subject to para. 18. Revised in 2009, annual periods beginning on or after 1 January 2011; earlier application of the partial exemption alone is permitted (para. 28).

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

2 questions

• An entity controlled by a government may omit the disclosures about its transactions and balances with that government, and with the other entities that the same government controls or over which it has joint control or significant influence.L1
• Étoile SA is controlled by the government. It sold services for 2,000,000 to the government, for 1,500,000 to a state-owned company also controlled by the government and for 900,000 to an independent private customer. Which transactions benefit from the partial exemption?L2