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Related parties

Related parties of an entity

1.1 Related party definition

‘A related party is a person or entity that is related to the entity
preparing its financial statements.’ (IAS 24 para 9)

They can be considered as an entity or person that could exert an
undue influence over the entity.

1.2 Who are deemed related parties to an entity?

 Key management personnel (KMP).

 Close family members of KMP.

 Entities that are members of the same group (Parent, subsidiaries, associates
and joint ventures).

1.3 Who are NOT deemed related parties to an entity?

The following are specifically excluded per IAS 24 Related party disclosures:

 two entities simply due to having a common director/ member of KMP

 two joint venturers

 providers of finance

 key customers and suppliers.

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