Name of the related party and nature of the related party relationship where control exists should be disclosed irrespective of whether or not there have been transactions between the related parties.
This is to enable users of financial statements to form a view about the effects of related party relationships on the enterprise.
If there have been transactions between related parties, during the existence of a related party relationship, the reporting enterprise should disclose the following:
- The name of the transacting related party;
- A description of the relationship between the parties;
- A description of the nature of transactions;
- Volume of the transactions either as an amount or as an appropriate proportion;
- Any other elements of the related party transactions necessary for an understanding of the financial statements;
- 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;
- Amounts written off or written back in the period in respect of debts due from or to related parties.
- Items of a similar nature may be disclosed in aggregate by type of related party.