IAS 24 Related Party Disclosures

[Shankar108]

Hi
This query is based on Indian Accounting Standards context. Since it is substantially drawn from IAS only amendment relates to inclusion of brother sister father and mother in the close member of the family of a person. Otherwise the entire standard is same as in IAS 24

My query is
In Ind AS 24 Related Party Disclosures- In Close member of a family member can we include
1. A person other than a family member who is a dependent upon the person or spouse or domestic partner or it restricts only those other family members who are dependent upon them. Because the definition starts with Close family member…
2. ⁠Since the definition is an inclusive one we need to include siblings and parents whether or not they expected to influence
3. ⁠Then the phrase “may be expected to influence or influenced by” is referred to only those persons whose relationship have not been mentioned in the definition that is other than children, spouse, domestic partner, brother, sister, father and mother.
4. ⁠Since Ind AS are principle based standards shall we also apply the phrase to all the family members and others who are expected to influence the person in their dealings with the entity. Because post partition between family members can we say the brothers and sisters are still able to influence one another. Though “Yes” in financials can we omit them as they couldn’t have any potential influence

Your guidance and opinion please

[Marek Muc]

The list provided in IAS 24.9 is not exhaustive, and an entity may identify, for example, a director’s brother as a related party.

[Shankar108]

Hi sir

If the Standard setters want to make the relatives to be the related party under this Standard then they would have included by nature of relationship in a straight manner that is brother sister etc.

In contrast they have included after the words “the close members of a family members are those who may be expected to influence or influenced by “including the children spouse Brother Sister etc.

So the phrase “may be expected to influence or influenced by” carrying the potential influence to decide the persons applicability of this standard.

That’s why I’m placing this query. Only because of having relationships as brother sister they can’t fall under this category, because they should establish potential influence. Based on the applicability of principles, Para 9 (a) the related parties to be decided.