Other transactions with managers

Learning objectives

• Identify the transactions and outstanding balances with key management personnel to be disclosed in addition to compensation.L2, L3

Normative references

• IAS 24 §18If there have been related party transactions, the entity discloses the nature of the related party relationship as well as information about those transactions and outstanding balances (including commitments) necessary for an understanding of the potential effect of the relationship on its financial statements, as a minimum: (a) the amount of the transactions; (b) the amount of outstanding balances, including commitments, with their terms and conditions (including whether they are secured and the nature of the consideration to be provided in settlement) and details of any guarantees given or received; (c) provisions for doubtful debts related to the outstanding balances; (d) the expense recognised during the period in respect of bad or doubtful debts due from related parties.
• IAS 24 §19The disclosures required by para. 18 are made separately for each of the following categories: (a) the parent; (b) entities with joint control of, or significant influence over, the entity; (c) subsidiaries; (d) associates; (e) joint ventures in which the entity is a joint venturer; (f) key management personnel of the entity or its parent; (g) other related parties.

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

2 questions

• In addition to the compensation of its finance director, Cyprès SA granted him a loan, outstanding at year-end. How is this loan treated in the related party note?L2
• During the year, Hêtre SA sold goods to a company controlled by a member of its key management personnel and granted a loan to another key manager. Which statements are right? More than one answer is possible.L3