Why disclose control without transactions

Learning objectives

• Explain why the control relationship is disclosed even when there are no transactions, and that this disclosure is in addition to the requirements of other Standards.L1, L2

Normative references

• IAS 24 §14To enable users to form a view about the effects of related party relationships, the control relationship is disclosed when control exists, irrespective of whether there have been transactions.
• IAS 24 §15The disclosure of parent-subsidiary relationships is in addition to the requirements of IAS 27 and IFRS 12.

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

2 questions

• The disclosure about parent-subsidiary relationships required by IAS 24 replaces that required by IAS 27 and IFRS 12 on the same subject.L1
• An intern summarises why the disclosure about parent-subsidiary relationships is given. Which sentence of the summary is wrong?L2