Modern structures of large businesses have a multifaceted, complex system of interconnected processes of subordination, support and cooperation, which together ensure the financial productivity of these structures. In such a context, it would be wrong to consider a particular company as a whole, but at the same time ignore issues of the external environment and those non-obvious connections that may be deliberately hidden from prying eyes.

Since the vast majority of modern transnational and regional corporations are systems of complex internal and external business connections, the relevance of disclosing information about them for stakeholders is constantly growing. Along with other indicators of the company's performance, information about external relations and related parties is an important part of the company's information field, which can provide interested parties with sufficient information to make management decisions and form conclusions on business issues of the enterprise. We will talk about what “related party disclosure” is and what issues are regulated by IAS 24 in this article.

General information on IAS 24 Related Party Disclosures

This standard is based on the idea that companies need to disclose in their financial statements information about external interactions that may have a significant impact on the company's business. Such interactions may be conditioned by various prerequisites, but in essence they are connections of the same type, differing only in the composition of actions.

We can say that the IAS 24 standard encourages companies not to hide, but rather to demonstrate their management structure and external interaction in order to most fully, from all sides, reflect the ideas, principles and goals in accordance with which the company conducts its business. It is clear that any external party that in any way can influence at least one part of the company’s business will have an indirect impact on other components along the chain, and this, in turn, is already a fairly compelling argument that justifies the need to disclose such information . The influence of external parties concerns not only the management process itself, but can extend to a wide range of business issues, including various financial settlements (loans, credits, guarantees, security), outstanding and frozen obligations, actual settlements and debts, which individually or in aggregate can affect the company's business and financial results.

Recognition of related parties under IFRS 24

The IFRS 24 standard defines for companies that prepare their financial statements in accordance with the requirements of international standards, a list of external parties and the characteristics that they must have in order to be recognized as related parties, that is, RP (related parties) in international terminology.

According to the rules described in this standard, any external individual or legal entity with which the company has any opaque business connections cannot be recognized as a related party. Only an individual or a company that, by its key properties, falls under the classification specified in IFRS 24 can be recognized as a related party:

Private person

The citizen himself individually or his close relatives can exercise influence or in some way control the business activities of the company in question. At the same time, the standard stipulates that an individual can not only directly control the company and manage the processes of making some key decisions, but also simply be “sufficiently influential on the company,” which implies a wide range of possibilities for interpretation. Based on this logic, the standard implies that any individual who, directly or indirectly, can influence the company itself or its parent should be treated as a related party and disclosed in the financial statements, but unless such a statement might be controversial.

Entity

A legal entity must be recognized as related to the company in question and disclosed in the financial statements in the following cases:

The company in question and the external legal entity are controlled by the same owners; are members of the same group of companies, parent/subsidiaries of each other;
The companies' relationship is considered a joint venture and they are associated companies of each other;
Companies carry out mutual settlements for items related to remuneration for each other’s work within the framework of a joint activity plan;
The owner of the company in question is a member of the senior management bodies of the external legal entity or vice versa;
One company manages the business of another company on behalf of that company.

Controversial issues of recognizing the parties as related

In a number of cases, individuals and legal entities are not recognized as related, since their interaction or identical characteristics are a consequence of market disposition and economic feasibility:

One manager heads two unrelated companies. Moreover, even if these companies conduct the same business, the presence of one hired manager at the head does not make them related at all.
Organizations provide each other with significant resources on preferential terms due to the donor party having such an economic opportunity.
Two organizations conducting a major transaction, despite the emergence of mutual dependence between them, do not become connected on the basis of such a transaction or several transactions.

The interdependence of parties in business is a common phenomenon that arises in the relationships of almost any business transaction. But the connection of the parties is a broader concept, implying a certain behavior of the parties. Simply put, there is no need to treat the parties as related if they have a close business relationship that allows them to go beyond the pattern of relationships in matters of financial preferences and settlements. On the other hand, it is necessary to take into account such operations and recognize them as “related” if they clearly show a contradiction in economic efficiency.

If a company makes strange transactions in relation to a company that it would never make from the point of view of economic logic, this may indicate that the parties to this transaction are related. Since the key objective of IAS 24 Related Party Disclosures is to ensure the integrity of financial statements and to demonstrate to stakeholders all facets of a company's business, it is critical that all relationships, transactions and obligations that the preparer of financial statements have with related parties are recorded and recognized in to the fullest.

Features of information disclosure according to IAS 24

According to IFRS IAS 24 “Related Party Disclosures”, when considering the issue of related parties, it is important for analysts and preparers to evaluate not only the legal aspects of corporate interaction, but to a greater extent focus on the analysis of the composition of transactions between the parties. That is, the essence of business transactions between the parties is a more important criterion than the formal characteristics by which recognition is possible. For example, if a transaction between related parties is carried out on arm's length terms and does not involve preferences, such disclosure is required only when the transaction can be clearly analyzed and measured.

Despite this, IFRS 24 provides clear guidance on related party disclosures that companies should follow when preparing high-quality financial statements:

Parent and subsidiary structures

Companies that are parent/subsidiaries of each other are required to disclose such information in their reporting in any case, regardless of the presence or absence of direct economic transactions between themselves. At the same time, the IFRS 24 standard establishes requirements that force a company to disclose information up to its ultimate beneficiary, who has the ability, through controlled persons, to influence the business of the company in question.

Management team

IAS 24 requires a company to disclose remuneration for management personnel who influence related parties. All information on short-term, long-term, additional and severance remuneration for key personnel of the company is subject to disclosure. The circle of people who have a significant impact on the business of each company includes certain specialists, depending on the individual characteristics of the organizational structure of the company's management. According to generally accepted practice, such persons include owners, board members, general and executive directors, their deputies and independent directors responsible for projects in companies.

Related parties IFRS 24

The company must report and reliably disclose to stakeholders the nature and composition of transactions with its related parties in order to enable analysis of the impact of these relationships on the company's business. This grouping of questions should reflect information on the total volume of transactions performed between related parties, their essence, composition, amounts and volumes of paid and outstanding obligations, the terms and conditions for ensuring the fulfillment of obligations, reserves and expenses associated with such transactions. In this case, any information of a business nature is subject to disclosure, according to IFRS 24, which affects the financial condition of the company in question:

On the volume of sales or purchases of goods, services, assets and property;
On leasing or transferring for temporary use of assets and resources;
On financial transactions between the parties;
Information about the transfer of technological developments, techniques, know-how, licenses or rights;
Information about guarantees, provisions or other corporate agreements.

Government control

If a company is subject to government control, in accordance with the methodological recommendations of the IAS 24 standard, financial information on interaction with related parties in terms of processes that were carried out due to the influence of the executive body of government or in its interests may be excluded from its reporting. But in this case, the company must disclose in its reporting:

Details of the control of the government body in terms of the nature of the relationship with the government body;
The volume and detail of financial transactions carried out under the control of a government agency;
The degree of proximity between the management of the enterprise and the government body and other significant issues.

Conclusions and Conclusion

Connectedness of the parties is not a new phenomenon and is widespread in modern business due to the specifics of today's economic interaction. Expansion of geography and blurring of boundaries for business expansion have led to the fact that organizations are increasingly implementing their business through subsidiaries, associates, related or joint ventures. From the point of view of business efficiency, this approach is often the most productive and allows you to quickly and effectively develop not just areas, but even entire foreign markets. In this vein, the company receives opportunities for operational management of the efficiency of the enterprise associated with it and guarantees the security of investments and predictability of profitability of the controlled business structure.

On the other hand, enterprises sometimes need to carry out operations that do not make sense in a market economy. Moreover, within the framework of a bundle of controlled companies, such operations are aimed at achieving consolidated results of the group of companies. Subsidiaries may engage in unprofitable operations or operate below cost in order to give a boost to a partner associated with the parent company, or, conversely, to maximize the profitability of the parent company at the expense of their own performance indicators.

Since the financial statements of related parties must disclose the full complexity of the causes and consequences of their corporate and financial interactions, it is important that they reflect all aspects and issues that are defined by IAS 24. Reports containing sufficiently detailed information that discloses all aspects of the interaction of related parties allows interested parties to draw conclusions about the influence of external parties on the company’s business, its profit and loss indicators, and make forecasts and recommendations regarding the company’s future business depending on changes in external factors.

FOR PROFESSIONAL ACCOUNTANTS

6 IAS 24 information on RELATED PARTIES

www. accountingreform. ru

PREFACE

Here is an updated version of the training manual prepared by a group of project specialists “Implementation of accounting and reporting reform”, which takes place in the Russian Federation with the support of the European Union.

This series focuses on the principles of International Financial Reporting Standards (IFRS). The manuals are intended as a series of materials for professional accountants who wish to independently acquire additional knowledge, information and skills.

Each collection is designed for no more than three hours of lessons.

Collection structure:

Information and examples

Self-control questions and exercises (multiple choice)

Key to self-control questions

The project is carried out by employees of the companies ZAO PricewaterhouseCoopers Audit, FBK, Agroconsulting and ACCA.

A list of all collections in the series can be found on the project's website.

The project working group expresses gratitude to everyone who participated in the preparation of the series.

Contact Information:

Russia, Moscow, January 2007 (updated version)

1. Introduction 3

2. Definitions 5

3. Disclosure 9

4. QUESTIONS FOR SELF-CONTROL 14

5. Practical examples 15

6. ANSWERS TO SELF-CONTROL QUESTIONS 15

7. SOLUTIONS TO PRACTICAL EXAMPLES 17

Introduction Purpose

The purpose of this manual is to help specialists study the methodology for disclosing information about related parties in accordance with IFRS.

Related party disclosure is discussed in detail in IAS 24. The standard is small but has a major impact on the level of disclosure in financial statements.

Financial statements must disclose the possible effects on an entity's financial position and profit or loss of the existence of related party relationships and transactions and outstanding settlements between the reporting entity and its related parties.

If controls are in place, information about the relationship between related parties should be disclosed regardless of whether transactions took place between them.

Scope of application

This standard shall apply:

in relation to related parties and transactions entered into between the reporting company and its related parties;

in relation to outstanding settlements existing between the reporting company and its related parties;

to identify situations in which related party transactions require appropriate disclosure in the financial statements; And

determining the content of information that is subject to disclosure in financial statements.

The requirements of this Standard apply to the financial statements of individual entities, controlling entities, venturers (parties in a joint venture), investors and consolidated groups.

Groups of companies

Members of the same group of companies are related parties. Transactions and outstanding balances within a group must be disclosed in the financial statements of each individual company, but this information is not disclosed in consolidated financial statements.

State controlled companies

Government controlled companies are within the scope of IFRS. For example, state-owned companies can carry out trade transactions among themselves, provided that they are influenced by the state.

Municipalities may trade with businesses owned by related parties.

The main feature is the ability of one related party to influence another related party.

Purpose of Related Party Disclosure

Related party relationships are a common occurrence in businesses around the world. For example, companies often conduct part of their business operations through subsidiaries, associates, or joint ventures. The parent company may control or exercise significant influence over the financial and operating decisions of the investee company, particularly in terms of pricing and credit terms.

Relationships with related parties can affect the profit or loss of the reporting company. Related parties may enter into transactions that have different terms from transactions that may be entered into with unrelated parties.

A company's earnings and financial position can be affected by its relationships with related parties, even if no transactions occur with related parties. The parent company may issue instructions to other group companies restricting the commercial activities of those companies.

Example

A parent company may limit a subsidiary's trading operations within one country, or impose restrictions on the subsidiary's product range, or prohibit it from conducting independent research and development. Some car manufacturers in Western Europe produce different parts of cars in different countries so that no one country produces all the parts. This gives companies some advantages in negotiating with unions and governments and allows them to seek some benefits as companies may threaten to move production to another country. The parent company exercises centralized control over the subsidiaries, which cannot operate as independent companies.

Information about related parties, as well as transactions and pending settlements with them, can influence the assessment of the company's activities by users of financial statements, especially regarding possible risks and prospects for the company's development.

Example

A bank may provide a loan to an independent company, knowing that the funds will be used to finance the business activities of that company. The subsidiary may use this loan to finance the activities of its parent company or the activities of other group members, thereby increasing the bank's credit risks.

Example

The bank finances a company engaged in housing construction. The degree of bank participation may indicate that the bank actually controls the activities of the construction company. Therefore, this company cannot be considered as a normal part of the bank's loan portfolio and related party disclosure is required.

Example

In some countries, a group of companies may include a bank that finances the group's activities on special terms (pocket bank). The bottom line is that a bank exists primarily to finance the activities of the group of companies of which it is a member, and thus standard risk assessment procedures cannot be applied to members of that group.

In this case, disclosure of information about the existence of such relationships with related parties, as well as the volume and content of the transactions performed, is required.

International Financial Reporting Standard (IAS) 24
"Related Party Disclosure"

With changes and additions from:

1 The purpose of this Standard is to ensure that an entity's financial statements include disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and transactions and balances that including obligations with such parties.

Scope of application

2 This standard applies:

(a) to identify related party relationships and transactions;

(b) to identify balances of transactions, including liabilities, between the entity and its related parties;

(d) to determine the information to be disclosed under those items.

Information about changes:

3 This Standard requires disclosure of related party relationships and transactions and the balances of such transactions, including liabilities, in the consolidated and separate financial statements of a parent or investor that has joint control or significant influence over an investee that is presented in accordance with IFRSs. (IFRS) 10 "Consolidated Financial Statements" and IAS (IAS) 27 "Separate Financial Statements". This Standard also applies to individual financial statements.

Information about changes:

4 An entity's financial statements disclose information about transactions with related parties and outstanding balances from transactions with other entities of the group. In preparing the group's consolidated financial statements, intra-group transactions between related parties and outstanding balances are eliminated, except for intra-group transactions and outstanding balances between an investment entity and its subsidiaries, which are measured at fair value through profit or loss.

Purpose of Related Party Disclosure

5 Related party relationships are a common occurrence in commerce and business. For example, enterprises often carry out part of their activities through subsidiaries, associates and joint ventures. In these circumstances, the enterprise has the ability to influence the financial and operating policies of the investee through control, joint control or significant influence.

6 Related party relationships can affect profit or loss and the financial position of an entity. Related parties may engage in transactions that unrelated parties would not undertake. For example, an enterprise that sells goods to its parent enterprise at cost may refuse to sell them on the same terms to another customer. In addition, transactions between related parties may not occur in the same volumes as between unrelated parties.

7 Related party relationships can affect profit or loss and the financial position of an entity even if there are no related party transactions. The mere existence of such a relationship may be sufficient to affect the entity's transactions with other parties. For example, a subsidiary may terminate its relationship with a trading partner after the parent acquires another subsidiary that engages in the same business as the former trading partner. Conversely, one party may refrain from taking certain actions due to the significant influence of the other party—for example, a subsidiary may be instructed by its parent not to conduct research and development.

8 Based on this, knowledge of an entity's operations, outstanding balances, including liabilities, and related party relationships can influence how users of financial statements evaluate the entity's performance, including their assessment of the risks and opportunities facing the entity.

Definitions

Information about changes:

9 This standard uses the following terms with the meanings specified:

Related party is an individual or entity that is associated with the entity that prepares its financial statements (referred to in this Standard as the “reporting entity”).

(a) An individual or that individual's close relatives is a related party of the reporting entity if the individual:

(i) has control or joint control over the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the senior management personnel of the reporting entity or its parent.

(b) An entity is a related party of the reporting entity if any of the following conditions apply to it:

(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and other subsidiary is a related party to the other entities in the group).

(ii) One enterprise is an associate of the other or the relationship is characterized as a joint arrangement (or one enterprise is an associate of a member of a group of which the other enterprise belongs or the relationship is characterized as a joint arrangement).

(iii) Both entities are in a joint venture with the same third party.

(iv) One enterprise has a joint venture with a third party and the other enterprise is an associate of that third party.

(v) A party is a post-employment benefit plan established for the employees of the reporting entity or any other entity that is a related party of the reporting entity. If the reporting entity is itself such a plan, the employers contributing to the plan are also related parties of the reporting entity.

15 The requirement to disclose information about the related party relationships between a parent and its subsidiaries complements the disclosure requirements in IAS 27 and IFRS 12 Disclosure of Interests in Other Entities.

(a) the government and the nature of its relationship with the reporting entity (that is, whether it has control, joint control or significant influence);

(b) the following information, in detail sufficient to enable users of the entity's financial statements to understand the effect of transactions with related parties on its financial statements:

(i) the nature and amount of each transaction, which is significant in itself; And

(ii) in relation to other transactions that are significant not individually, but in the aggregate, qualitative or quantitative indicators of their scale. Types of transactions include those listed in paragraph 21.

27 When using its judgment to determine the level of disclosure required by paragraph 26(b), the reporting entity shall consider the proximity of the related party relationships and other factors relevant to determining the level of significance of the transaction, for example:

(a) whether the operation is significant in scale;

(b) whether the transaction was conducted on non-market terms;

(d) whether the transaction has been disclosed to regulatory or supervisory authorities;

(e) whether senior management was informed of the transaction;

(f) whether shareholder approval for the transaction has been obtained.

Effective date and transition to the new accounting procedure

28 An entity shall apply this Standard retrospectively for annual periods beginning on or after 1 January 2011. Early application of the entire standard or partial exemption from the requirements provided in paragraphs 25–27 for government-related entities is permitted. If an entity applies the entire standard or partial exemption for an annual period beginning before 1 January 2011, it must disclose that fact.

Information about changes:

Amendments to International Financial Reporting Standard (IFRS) 10, International Financial Reporting Standard (IFRS) 12 and International Financial Reporting Standard (IAS) 27 supplement this Standard with paragraph 28B, which comes into force in the Russian Federation from the date of entry into force of International Financial Reporting Standards

28B Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended Annual Improvements to IFRSs. , period 2010-2012", released in December 2013, introduced changes to

International Financial Reporting Standard (IAS) 24 “Related Party Disclosure” is provided.

A related party can be either an individual (his close relatives) or an enterprise. The conditions under which they are recognized as such a party are established.

It regulates how information about relationships and transactions with related parties, as well as transaction balances (including liabilities), is disclosed.

It is reflected in the consolidated and separate financial statements of the parent, venturer or investor. Intragroup transactions between related parties and outstanding balances are eliminated when preparing group consolidated financial statements. The standard also applies to individual financial statements.

The relationship between the parent and subsidiaries is disclosed regardless of whether transactions took place between them. A legal entity reflects information about the parent organization and the controlling party if they do not match. However, if neither the first nor the second presents consolidated financial statements available for public use, the name of the higher-level parent enterprise that provides such statements is also indicated.

The organization also discloses compensation information for senior management personnel (short-term employee benefits, severance benefits, share-based compensation, etc.)

The minimum information that is reflected by the organization when transactions were carried out between it and related parties during the periods presented in the financial statements has been determined. This is, in particular, the amount of transactions, their balances (including liabilities) and the conditions for their implementation, data on any guarantees provided and received, etc. Such information is provided separately for parent, subsidiary, associated enterprises and some other indicators.

Explains how reporting should be prepared for organizations associated with the government of the enterprise.

The standard applies to annual periods beginning on January 1, 2011. Its early application (including partial) is permitted.

It replaces IAS 24 Related Party Disclosures (as amended in 2003).

International Financial Reporting Standard (IAS) 24 Related Party Disclosures

The text of the International Financial Reporting Standard was published in the supplement to the journal "Accounting", 2011, No. 12 (date of signing the supplement for publication - December 15, 2011)

Put into effect by order of the Ministry of Finance of the Russian Federation dated November 25, 2011 N 160n

Comes into force on the territory of the Russian Federation from the date of official publication. Organizations prepare, present and publish consolidated financial statements starting with reporting for the year following the year in which IFRS is accepted for use in the Russian Federation

; for mandatory use by organizations - within the time limits specified in this document

Changes take effect upon official publication

International Financial Reporting Standard (IFRS) 12 “Disclosure of information about participation in other enterprises” (put into effect by Order of the Ministry of Finance of the Russian Federation dated July 18, 2012 N 106n)

The changes come into force on the territory of the Russian Federation for voluntary application by organizations - from the date of their official publication; for mandatory application by organizations - for annual periods beginning on or after 1 January 2013

Target

1 Purpose of this standard IAS 24- ensure that the financial statements of an entity include disclosures necessary to draw attention to the possibility that its financial position, and profit or loss, could be affected by the existence of related parties and transactions and balances with such parties.

Scope of application

2 This IAS 24 standard applies:

(a) to identify related party relationships and transactions;
(b) to identify balances of transactions between the entity and its related parties;
(c) to identify circumstances in which disclosure of information is required in accordance with paragraphs. (a) and (b);
(d) to determine the information to be disclosed under those items.

3 This standard requires disclosure of related party transactions and the balances of those transactions in the separate financial statements of the parent, venturer or investor that are presented in accordance with IAS 27 "Consolidated and Separate Financial Statements".

4 An entity's financial statements disclose information about transactions between related parties and outstanding balances from transactions with other entities of the group. Intra-group transactions between related parties and outstanding balances are eliminated when the group's consolidated financial statements are prepared.

Purpose of Related Party Disclosure

7 Related party relationships can affect profit or loss and the financial position of an entity even if no related party transactions occur. The mere existence of such a relationship may be sufficient to affect the entity's transactions with other parties. For example, a subsidiary may terminate its relationship with a trading partner after the parent acquires another subsidiary that engages in the same business as the former trading partner. Conversely, one party may refrain from taking certain actions due to the significant influence of the other party—for example, a subsidiary may be instructed by its parent not to conduct research and development.

8 Based on this, awareness of related party transactions, outstanding balances and relationships can influence how users of financial statements evaluate the performance of an entity, including the assessment of the risks and opportunities facing the entity.

Definitions

9 This Standard IAS 24 uses the following terms with the meanings specified:

Related party- a party is a related party of the enterprise if:

(a) such party directly or indirectly, through one or more intermediaries:
- (i) controls or is controlled by the entity or if the entity and such party are under common control (this includes parents, subsidiaries and other subsidiaries of the same parent);
- (ii) has an interest in the enterprise that gives it significant influence over the enterprise; or
- (iii) exercises joint control over the entity;
(b) the party is an associate (as defined in IAS 28 Investments in Associates) ) of this enterprise;
(c) the party is a joint arrangement in which the entity is a member (see IAS 31 "Participation in joint venture");
(d) the party is a member of the senior management personnel of the enterprise or its parent enterprise;
(e) the party is a close relative of any of the persons referred to in paragraph (a) or paragraph (d);
(f) the party is an entity that is controlled, jointly controlled or significantly influenced by any of the persons referred to in paragraph (d) or paragraph (e), or such persons have, directly or indirectly, significant voting rights in this enterprise;
(g) the party is a post-employment benefit plan established for the employees of the enterprise or any other enterprise that is a related party of the enterprise.

Related party transaction - transfer of resources, services or obligations between related parties, regardless of whether a fee is charged.

Close relatives of a private person - These are family members who are expected to influence or be influenced by such an individual in the course of his transactions with the enterprise. These may include:

(a) the spouse or common-law spouse and children of such person;
(b) the children of such person's spouse or common-law spouse;
(c) dependents of an individual, a spouse or common-law spouse of such person;

Compensation - includes all employee benefits (as defined in IAS 19 Employee Benefits) ), including awards to which IFRS 2 Share-based Payment applies. Employee benefits include all forms of compensation paid, payable or provided by or on behalf of an enterprise for services rendered to the enterprise. It also includes compensation that the parent company pays on behalf of the enterprise. Compensation includes:

(a) short-term employee benefits, such as wages and social security contributions, paid annual leave and paid sick leave, profit sharing and bonuses (if payable within 12 months after the end of the period), and non-monetary benefits form (medical care, housing, cars, provision of goods or services free of charge or at a reduced price) for existing employees;
(b) post-employment benefits such as pensions, other retirement benefits, life insurance and post-employment health care;
(c) other long-term employee benefits, including long service leave, extended vacation, long service and other service benefits, long-term disability benefits, and profit sharing, bonuses and deferred compensation (unless these types of benefits are subject to payment within twelve months after the end of the period);
(d) severance payments;

Control - the right to determine the financial and operating policies of the enterprise in order to derive benefits from its activities.

Joint control - This is the division of control over economic activity enshrined in the agreement.

Senior management staff - these are persons who are authorized and responsible for planning, directing and controlling the activities of an enterprise, directly or indirectly, including the directors (executive or otherwise) of that enterprise.

Significant influence - this is the opportunity to participate in decision-making on the financial and production policies of the enterprise, but not control over such policies. Significant influence can be achieved through shared ownership, by charter, or by agreement.

10 When considering each case of a relationship that may be a relationship between related parties, it is necessary to pay attention to the content (essence) of such relationships, and not just to their legal form.

11 For the purposes of this Standard, the following parties may not be related parties:

(a) two undertakings, only because they share a director or other member of senior management, notwithstanding paragraphs (d) and (f) definitions of related parties;
(b) two venturers only because they exercise joint control over the joint venture.
(c)
- (i) parties providing financing,
- (ii) trade unions,
- (iii) public services,
- (iv) government agencies and departments, based only on the existence of normal operations with the enterprise (even if they may influence the freedom of action of the enterprise or participate in the decision-making process of the enterprise).
(d) an individual customer, supplier, franchisee, distributor or general agent with whom the enterprise enters into a large volume of transactions solely because of the resulting economic dependence.

Information disclosure

12 Relationships between parents and subsidiaries are disclosed regardless of whether transactions occurred between those related parties. An entity discloses information about its parent and about the party having ultimate control if that party is different from the parent. If neither the parent nor the party with ultimate control produces financial statements that are available to the public, the name of the next higher level of parent that produces those statements is also disclosed.

13 To enable users of financial statements to form an opinion about the effect of related party relationships on the entity, disclosures should be made about the related party relationships when control exists, regardless of whether there have been related party transactions.

14 Disclosure of related party relationships between parents and subsidiaries is in addition to the disclosure requirements in IAS 27, IAS 28 and IAS 31, which require disclosure of a list and description of material investments in subsidiaries, associates and jointly controlled entities.

15 If neither the parent nor the party with ultimate control produces financial statements available to the public, the entity discloses the name of the next higher level of parent that does so. A next-higher parent is the first parent of a group below the immediate parent that prepares consolidated financial statements available for public use.

16 An entity discloses compensation for senior management personnel of the entity as a whole and for each of the following categories:

(a) short-term employee benefits;
(b) post-employment benefits;
(c) other long-term benefits;
(d) severance payments;
(e) Share-based payments.

17 If there have been transactions between related parties, an entity discloses the nature of the related party relationship and information about the transactions and their balances necessary to understand the likely effect of the relationship on the financial statements. This disclosure requirement is in addition to the requirements in paragraph 16 for the disclosure of compensation information to senior management personnel of an entity. The information disclosed includes, at a minimum, the following:

(a) the amount of transactions;
(b) the amount of the balances of such transactions, and:
- (i) the terms of their holding, including the availability of security, as well as the nature of the consideration provided upon settlement; And
- (ii) details of any guarantees given and received;
(c) provisions for doubtful debts relating to balances with related parties; And
(d) costs recognized during the period in respect of bad or doubtful debts from related parties.

18 Information, the disclosure of which is required by paragraph 17, is disclosed separately in the following categories:

(a) parent undertaking;
(b) entities that have joint control over the entity or significant influence over the entity;
(c) subsidiaries;
(d) associated enterprises;
(e) a joint venture in which the enterprise is a party;
(f) senior management personnel of the enterprise or its parent enterprise; (g) other related parties.

19 The requirement in paragraph 18 to classify into different categories amounts payable to or received from related parties is a continuation of the requirements in IAS 1 Presentation of Financial Statements. to disclosures that must be presented either in the statement of financial position or in the notes. The categories have been expanded to provide a more comprehensive analysis of related party transaction balances and relate to transactions between related parties.

20 The following are examples of transactions that must be disclosed when they are with related parties:

(a) purchases and sales of goods (finished or unfinished);
(b) purchases and sales of property and other assets;
(c) provision or receipt of services;
(d) rental transactions;
(e) transfer of research and development;
(f) assignment of rights under license agreements;
(g) transfers of funds under financing agreements (including loans and capital contributions in cash or in kind);
(h) providing guarantees or security;
(i) settlements of obligations on behalf of the enterprise or settlements by the enterprise itself on behalf of another party.

The participation of a parent or subsidiary in a defined benefit plan where the risk is shared among group entities is a related party transaction (see paragraph 34B of IAS 19).

21 Information that transactions between related parties were carried out on terms identical to those on which transactions between unrelated parties are carried out is disclosed only if such terms can be substantiated.

22 Items of a similar nature may be disclosed in aggregate unless separate disclosure is necessary to understand how transactions between related parties affect the financial statements of the entity.

Effective date

23 An entity shall apply this Standard for annual periods beginning on or after 1 January 2005. Early use is encouraged. If an entity applies this Standard for a period beginning before 1 January 2005, it must disclose that fact.

23A An entity shall apply the amendments in paragraph 20 for annual periods beginning on or after 1 January 2006. If an entity applies the amendments to IAS 19 Employee Benefits - actuarial gains and losses, jointly managed pension plans and disclosures» to an earlier period, then the amendments should be applied to that earlier period.

Discontinuation of IAS 24 (as amended in 1994)

24 This standard replaces IAS 24 "Related Party Disclosure"(revised 1994).

IFRS 2 4

International Financial Reporting Standard(IAS) 24
"Related Party Disclosure"

Target

1. Purpose of this standard- provide, that an entity's financial statements include disclosure, necessary to draw attention to the possibility of, what is his financial situation, and profit or loss could be affected by the existence of related parties, and transactions and balances, including obligations with such parties.

Scope of application

2. This standard applies:

(a) to identify related party relationships and transactions;

(b) to identify transaction balances, including liabilities, between an entity and its related parties;

(c) to identify circumstances, in which disclosure of information is required in accordance with paragraphs. (a) and (b); And

(d) to determine information, subject to disclosure on the specified points.

3. This standard requires disclosure of information about relationships and transactions with related parties, and the balances of such transactions, including liabilities, inconsolidated and separate financial statements of the parent, joint venturer or investor that are presented in accordance with . This standard also applies to individual financial statements.

4. The financial statements of an enterprise disclose information about transactionswith related parties and outstanding balances on transactions with other group entities. Intra-group transactions between related parties and outstanding balances are eliminated when the group's consolidated financial statements are prepared.

Purpose of Related Party Disclosure

5. Related party relationships are a common occurrence in commerce and business. For example, enterprises often carry out part of their activities through subsidiaries, associates and joint ventures. In these circumstances, the enterprise has the ability to influence the financial and operating policies of the investee through control, joint control or significant influence.

6. Related party relationships can affect profit or loss and the financial position of an entity. Related parties may engage in transactions that unrelated parties would not undertake. For example, an enterprise that sells goods to its parent enterprise at cost may refuse to sell them on the same terms to another customer. In addition, transactions between related parties may not occur in the same volumes as between unrelated parties.

7 . Related party relationships can affect profit or loss and the financial position of an entity even if no related party transactions occur. The mere existence of such a relationship may be sufficient to affect the entity's transactions with other parties. For example, a subsidiary may terminate its relationship with a trading partner after the parent acquires another subsidiary that engages in the same business as the former trading partner. Conversely, one party may refrain from taking certain actions due to the significant influence of the other party—for example, a subsidiary may be instructed by its parent not to conduct research and development.

8 . Based on this, knowledge of an entity's operations, outstanding balances, including liabilities, and related party relationships can influence how users of financial statements evaluate the entity's performance, including their assessment of the risks and opportunities facing the entity.

Definitions

9. This standard uses the following terms with the meanings specified:

Related party is an individual or entity associated with the entity that prepares its financial statements (referred to in this Standard as the “reporting entity”).

(a) A private individual or close relatives of this private individualare a related party of the reporting entity if that entity:

(i) exercises control or joint control over the reporting enterprise;

(ii) has significant influence over the reporting entity; or

(iii) is part of the reporting entity or its parent.

(b) Enterprise is a related party of the reporting entity if any of the following conditions apply to it::

(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and other subsidiary is a related party to the other entities in the group).

(ii) One enterpriseis an associated enterprise of another or their relationship is characterized as a joint venture(or one enterprise isan associated enterprise of a member of the group that includes the other enterprise, or their relationship is characterized as a joint venture).

(iii) Both entities are in a joint venture with the same third party.

(iv) One enterprise is in a joint venture with a third party, and the other enterprise isassociate of that third party.

(v) Party is a post-employment benefit plan, created for employees of the reporting enterprise or any- or other enterprise, is a related party of the reporting entity. If the reporting entity is itself such a plan, the employers contributing to the plan are also related parties of the reporting entity.

(vi) The enterprise is under the control or joint control of the person specified in paragraphs. (a).

(vii) The person specified in paragraphs. (a)(i), has significant influence over the entity, or included in senior management personnel enterprises (or its parent company).

Related party transaction — resource transfer, services or obligations between the reporting entity and a related party, no matter, is there a fee for this?.

Close relatives of a private person are family members who are expected to may influence or be influenced by such individual in the course of transactions with the enterprise. These may include:

(a) the children and the spouse or common-law spouse of such person;

(b) the children of such person's spouse or common-law spouse; And

(c) dependents of such person, spouse or common-law spouse of such person.

Compensation includes all employee benefits (as defined in IFRS(IAS) 19 « Employee benefits » ), including remuneration, to which IFRS is applied(IFRS) 2 "Share-based payment." Employee benefits include all forms of compensation, paid , payable or provided by or on behalf of an enterprise for services, provided to the enterprise. It also includes compensation, paid on behalf of the parent enterprise in respect of the enterprise. Compensation includes:

(a) short-term employee benefits, such as wages and social security contributions, paid annual leave and paid sick leave, profit sharing and bonuses (if payable within 12 months after the end of the period), and non-monetary benefits form (medical care, housing, transportation, provision of goods or services free of charge or at a reduced price) for existing employees;

(b) post-employment benefits such as pensions, other retirement benefits, life insurance and post-employment health care;

(c) other long-term employee benefits, including long service leave, extended vacation, long service and other service benefits, long-term disability benefits, and profit sharing, bonuses and deferred compensation (unless these types of benefits are subject to payment within twelve months after the end of the period);

(d) severance payments; And

Control - the right to determine the financial and operating policies of an enterprise in order to obtain benefits from its activities.

Joint control — a contractually agreed upon division of control over economic activity.

Senior management staff — persons who are authorized and responsible for planning, directing and controlling the activities of an enterprise, directly or indirectly, including the directors (executive or otherwise) of that enterprise.

Significant influence — opportunity to participate in decision-making on the financial and operational policies of the enterprise, but not control over such policies. Significant influence can be achieved through fractional ownership, by charter or by agreement.

Government means government, government agencies and similar bodies, local, national or international.

Government-related enterprise - an enterprise that is controlled, jointly controlled or significantly influenced by the government.

10 . When considering each case of relationship, which may constitute related party relationships, content must be taken into account(essence) of such relations, and not just their legal form.

11. For the purposes of this standard, the following parties are not related parties:

(a) two undertakings only because they share a director or other member of senior management, or because a member of the senior management of one undertaking has significant influence over the other undertaking;

(b) two venturers for the sole reason that they exercise joint control over the joint venture.

(c)(i) financing providers

(ii) trade unions,

(iii) utility services,

(iv) government agencies and departmentsentities that do not exercise control, joint control or significant influence over the reporting entity,

only on the basis of the existence of normal transactions with the enterprise (even if they may influence the freedom of action of the enterprise or participate in the decision-making process of the enterprise).

(d)an individual buyer, supplier, franchisee, distributor, or general agent with whom an enterprise enters into significant transactions solely because of the resulting economic dependence.

12 . In the definition of a related party, an associate includes subsidiaries of an associated enterprise, and a joint venture includes subsidiaries of the participants in the joint venture. Therefore, for example, a subsidiary of an associate and an investor that has significant influence over the associate are related parties to each other.

Information disclosure

All companies

13. The relationship between a parent and its subsidiaries must be disclosed regardless of whether transactions occurred between those parties. An entity must disclose information about its parent and about the party having ultimate control if that party is different from the parent. If neither the parent nor the party with ultimate control produces consolidated financial statements available for public use, the name of the next higher level parent that does so is also disclosed.

14. To enable users of financial statements to form an opinion about the impact of related party relationships on an entity, related party relationships should be disclosed when control exists, regardless of whether related party transactions occurred.

15 . Disclosure Requirementinformation about the relationship between the parent enterprise and its subsidiaries as related parties complements the disclosure requirements presented in, And .

16. Paragraph 13 refers to the next higher level of parent. It is the first parent in the group above the immediate parent that produces consolidated financial statements available for public use.

17. The entity discloses compensation information for senior management personnel of the entity as a whole and for each of the following categories::

(a) short-term employee benefits;

(b) post-employment benefits;

(c) other long-term benefits;

(d) severance payments; And

(e) share-based payments.

18. If there were transactions between the entity and its related parties during the periods presented in the financial statements, the enterprise discloses the nature of its relationships with related parties, as well as information about transactions and their balances, including obligations,necessary for users to understand the potential impact of such relationships on the financial statements. These disclosure requirements are in addition to the requirements of paragraph 17. The information disclosed must include at least the following:

(a) the amount of transactions;

(b) the amount of balances on such transactions,including obligations, and:

(i) the terms of their holding, including the availability of security, as well as the nature of the consideration provided upon settlement; And

(ii) details of any guarantees given and received;

(c) provisions for doubtful debts relating to balances with related parties; And

(d) costs recognized during the period in respect of bad or doubtful debts from related parties.

19. Information, the disclosure of which is required by the clause 18, is disclosed separately in the following categories:

(a) parent undertaking;

(b) entities that have joint control over the entity or significant influence over the entity;

(c) subsidiaries;

(d) associated enterprises;

(e) a joint venture in which the enterprise is a party;

(f) senior management personnel of the enterprise or its parent enterprise; And

(g) other related parties.

20. The requirement in paragraph 19 to classify into different categories amounts payable to or received from related parties is a continuation of the requirements to disclosures that must be presented either in the statement of financial position or in the notes. The categories have been expanded to provide a more comprehensive analysis of related party balances and apply to related party transactions.

21. The following are examples of transactions that must be disclosed if they are with related parties:

22. Participation of a parent or subsidiary in a defined benefit plan, where the risk is shared between the group's enterprises, is a transaction between related parties(see paragraph 34 B).

23. Information about, that transactions with related parties were carried out on terms, identical conditions, on which transactions between unrelated parties are carried out, disclosed only if, if such conditions can be justified.

24. Items of a similar nature may be disclosed in aggregate, except in cases, when separate disclosure is necessary to understand, How transactions with related parties affect the financial statements of the enterprise.

Government-related businesses

25. A reporting entity is exempt from the disclosure requirements in paragraph 18 in respect of transactions with related parties and balances of such transactions, including liabilities, if:

(a) the government controls, jointly controls or has significant influence over the reporting entity; And

(b) there is another entity that is a related party because the same government controls, jointly controls or has significant influence over the reporting entity and the other entity.

26. If a reporting entity applies the exemption provided in paragraph 25, it shall disclose the following information about the transactions and balances of those transactions covered by paragraph 25:

(a) the government and the nature of its relationship with the reporting entity (that is, whether it has control, joint control or significant influence);

(b) the following information, in detail sufficient to enable users of the entity's financial statements to understand the effects of transactions with related parties on its financial statements:

(i) the nature and amount of each transaction, which is significant in itself; And

(ii) in relation to other operations that are significant not individually, but in the aggregate, - qualitative or quantitative indicators of their scale. Types of transactions include those listed in paragraph 21.

27 . In using its judgment to determine the level of disclosure required by paragraph 26(b), the reporting entity shall considerthe degree of proximity of related party relationships and other factors relevant to determining the level of significance of a transaction, for example:

(a) is this operationsignificant in scale;

(b) whetherthis operationon non-market conditions;

(d) whether the transaction has been disclosed to regulatory or supervisory authorities;

(e) whether senior management was informed of the transaction;

(f) whether shareholder approval for the transaction has been obtained.

Effective date and transition to the new accounting procedure

28. An entity shall apply this standard retrospectively for annual periods beginning on or after 1 January 2011. Early application of the entire standard or partial exemption from the requirements provided in paragraphs 25 through 27 for government-related entities is permitted. If an entity applies the entire standard or partial exemption for an annual period beginning before 1 January 2011, it must disclose that fact.

Termination of IFRS (IAS) 24 (as amended 2003)

29 . This standard replaces IFRS ( IAS) 24 " Related Party Disclosure" (revised 2003).