IAS 24 - Related Party Disclosures
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 24 requires disclosure of relationships, transactions, and outstanding balances with related parties to ensure transparency and prevent conflicts of interest.
Detailed Explanation
IAS 24 requires disclosure of related party relationships, transactions, and balances to enhance transparency and help users assess potential conflicts of interest.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IAS 24 - Related Party Disclosures** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.