[Illustrative Checklist] Disclosure requirements under Ind AS 24 | Related Party Disclosures

The objective of Ind AS 24: Related Party Disclosures, is to ensure that an entity’s financial statements contain the 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 by transactions and outstanding balances, including commitments, with such parties.

As per the requirement of this Ind AS, an entity is required to follow the below-mentioned disclosure requirements:

I. Whether the entity has disclosed:

(a) the relationship between the parent and its subsidiaries irrespective of where there have been transactions between them.

(b) the name of the parent and, if different, the ultimate controlling party.

(c) the next most senior parent if neither parent nor ultimate controlling party produces consolidated financial statements available for public use.

II. Irrespective of whether there have been transactions between the related parties check whether the entity has made disclosure of relationships, name of the related party and nature of the related party relationship when control exists.

III. An entity shall disclose key management personnel compensation in total and for each of the following categories:

(a) short-term employee benefits;

(b) post-employment benefits;

(c) other long-term benefits;

(d) termination benefits; and

(e) share-based payment.

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