Page 139 - IC26 LIFE INSURANCE FINANCE

Key Management Personnel

Those persons who have the authority and responsibility for planning, directing and controlling the

activities of the reporting enterprise.

The following are not deemed to be related party:

 Two companies simply because they have common director

 A single customer/supplier with whom an enterprise transacts a significant volume of

business merely by virtue of the resulting economic dependence

 Providers of finance

 Trade Unions

 Public Utilities

 Government departments and Government sponsored bodies

DISCLOSURE

If there have been transactions between related parties, during the existence of a related party

relationships, the reporting enterprise should disclose the followings:

 Name of the transacting related party

 Description of the relationship

 Description of nature of transaction

 Volume of transaction ( Amount wise or proportion wise)

 Any other information necessary for understanding financial statements

 Outstanding ( Amount wise or proportion wise) and any provision for doubtful debt due

from such party

 Amounts written off or written back in respect of debts due from or to related parties.

 The followings are the examples of the related party transactions

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