Question

(b) Does AASB124 ‘Related Party Disclosure’ require disclosure of the money amounts of related-party transactions? Do you agree with the policy. Explain your answer and provide an example.

Answer 1

If there have been transactions between related parties, during the
existence of a related party relationship, the reporting enterprise should
disclose the following:
(i) the name of the transacting related party;
(ii) a description of the relationship between the parties;
(iii) a description of the nature of transactions;

(iv) volume of the transactions either as an amount or as an
appropriate proportion;
(v) any other elements of the related party transactions necessary
for an understanding of the financial statements;
(vi) the amounts or appropriate proportions of outstanding items
pertaining to related parties at the balance sheet date and
provisions for doubtful debts due from such parties at that date;
and
(vii) amounts written off or written back in the period in respect of
debts due from or to related parties