Definition of ' Related Party'

[Yousaf]

Hi,

Mr. X is a director of Company A (Key management personnel).

Mr. Y is a director of Company B (Key management personnel) and hold the 53% shareholding in B.

Mr. Y is a son of Mr. X.
Mr. Y is independent from Mr. X.
Mr. X is also a key management personnel in Company B.

Company A and B are related parties ?

[JRSB]

What's your reading of the standard?

[Marek Muc]

... and of our knowledge base?

https://ifrscommunity.com/knowledge-bas ... ated-party

[Yousaf]

In my view, Entity A & B are not related parties.[Paragraph 9(b)(vi)–(a)(iii)]

Because Mr. X has only significant influence (not control) over A. So, A & B are not related.

[Marek Muc]

These companies are related, because Mr Y controls B and his close family member is a member of the key management personnel of A (IAS 24.9(b)(vii)).

[Yousaf]

Mr. Y and Mr. X both are independence. These are family members only but not close family members.

[JRSB]

Parent and child are not close family?

[Marek Muc]

Children and spouses are close family members under IAS 24.9