Minimum content of the disclosure

Learning objectives

• Identify the minimum content to be disclosed (amounts of transactions, outstanding balances and commitments with their terms and conditions and guarantees, nature of the relationship).L1, L2, L3
• Prepare the disclosure of a related party's transactions and balances from the data of a case.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.

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

2 questions

• Transactions with related parties took place during the year. Which of these items are part of the minimum disclosure? More than one answer is possible.L1
• Aubier SA sells goods on credit to its subsidiary for {sale_amount}. In its separate financial statements, it records the sale. Post the entry (case convention, IAS 24 requires no entry).L2