2A. AASB 124 Related Party Disclosures Illustrative examples for when Key Management Personnel (KMP) declaration of related party transactions would be required Related party relationships Whether information is required to be Declaration Information for KMP to disclose in Scenario KMP Related party declared required? their declaration checklist is CEO of the Sister The is not in a senior position (i.e. No None. CEO’s sister CEO’s sister employed as a nurse at an executive) that has decision-making Royal Children’s Hospital responsibility. the Royal Children’s Hospital No perceived ability for this relationship to influence transactions between the public hospital and the agency. Deputy Firm where son is a The Deputy son is a tax partner in a No None. Deputy Secretary’s son Secretary’s is a tax partner of a Secretary of partner large firm with multiple partners and does not large accounting firm DET have any influence on his firm for the provision of providing PPP advisory PPP advisory services. services to DET. No perceived ability for this relationship to influence transactions between the accounting firm and the department. Cabinet Minister Wife The is in a senior (executive) Yes The KMP would need to declare any Cabinet Minister’s wife Minister’s wife has been appointed (who is Portfolio position with decision-making responsibility for a involvement he may have had in his wife’s Secretary of another Minister of department. appointment. department (DTF). DHHS) Perceived ability to influence or be influenced in He would also need to declare the nature of her appointment. the amount and terms and conditions of any transactions influenced by the existence of Perceived ability to influence transactions by the this related party relationship. existence of this relationship.
2A. AASB 124 Related Party Disclosures Illustrative examples for when Key Management Personnel (KMP) declaration of related party transactions would be required Related party relationships Scenario KMP Related party Whether information is required to be declared Declaration required? Information for KMP to disclose in their declaration checklist CEO’s sister is employed as a nurse at the Royal Children’s Hospital CEO of the Royal Children’s Hospital Sister The CEO’s sister is not in a senior position (i.e. an executive) that has decision-making responsibility. No perceived ability for this relationship to influence transactions between the public hospital and the agency. No None. Deputy Secretary’s son is a tax partner of a large accounting firm providing PPP advisory services to DET. Deputy Secretary of DET Firm where son is a partner The Deputy Secretary’s son is a tax partner in a large firm with multiple partners and does not have any influence on his firm for the provision of PPP advisory services. No perceived ability for this relationship to influence transactions between the accounting firm and the department. No None. Cabinet Minister’s wife has been appointed Secretary of another department (DTF). Cabinet Minister (who is Portfolio Minister of DHHS) Wife The Minister’s wife is in a senior (executive) position with decision-making responsibility for a department. Perceived ability to influence or be influenced in her appointment. Perceived ability to influence transactions by the existence of this relationship. Yes The KMP would need to declare any involvement he may have had in his wife’s appointment. He would also need to declare the nature of the amount and terms and conditions of any transactions influenced by the existence of this related party relationship.
AASB-124-Examples%20of%20when%20a%20declaration%20would%20be%20required.docx