Examples of transactions to disclose

Learning objectives

• Identify examples of related party transactions (goods, services, assets, leases, financing, guarantees, commitments).L1, L2

Normative references

• IAS 24 §21Examples of transactions that are disclosed if they are with a related party: purchases or sales of goods (finished or unfinished); purchases or sales of property and other assets; rendering or receiving of services; leases; transfers of research and development; transfers under licence agreements; transfers under finance arrangements (including loans and equity contributions in cash or in kind); provision of guarantees or collateral; commitments to do something if a particular event occurs or does not occur in the future, including executory contracts (recognised and unrecognised); settlement of liabilities on behalf of the entity or by the entity on behalf of the related party.

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

2 questions

• Which of the following operations are examples of transactions to be disclosed when they take place with a related party? More than one answer is possible.L1
• Cassis SA grants its subsidiary a licence to use its brand in exchange for a royalty and lends it funds. An accountant thinks that only purchases and sales of goods are to be disclosed. What should he bear in mind?L2