Therefore, when assessing materiality, this should be done in consultation with audit committee and external auditor and considers both the size and council’s nature of the transaction, individually and collectively. Disclosure Requirements AASB 124 contains disclosure requirements to enable users of financial statements to understand the potential effect of the relationship on the financial statement. Key requirements are discussed below. KMP Compensation in aggregate and for each of the following categories: Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Relationships between council and its subsidiaries, irrespective of whether there have been transactions between them. Amounts incurred by council for the provision of KMP services that are provided by a separate management entity. Where related party transaction have occurred (this is for all categories of related parties including related entities, close family member/controlled KMPs, KMPs’ entities and any other related parties council has identified): The nature of the related party relationship; Information about the transactions, outstanding balances and commitments including terms and conditions;* Separate disclosure for each category of related party. *In respect to the 4(b), the types of transactions disclosed can include: Purchase/sales and lease of goods, property and other assets Rendering or receiving of goods, services, property and other assets. Guarantees given or received Commitments
Therefore, when assessing materiality, this should be done in consultation with council’s audit committee and external auditor and considers both the size and nature of the transaction, individually and collectively. Disclosure Requirements AASB 124 contains disclosure requirements to enable users of financial statements to understand the potential effect of the relationship on the financial statement. Key requirements are discussed below. KMP Compensation in aggregate and for each of the following categories: Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Relationships between council and its subsidiaries, irrespective of whether there have been transactions between them. Amounts incurred by council for the provision of KMP services that are provided by a separate management entity. Where related party transaction have occurred (this is for all categories of related parties including related entities, KMPs, KMPs’ close family member/controlled entities and any other related parties council has identified): The nature of the related party relationship; Information about the transactions, outstanding balances and commitments including terms and conditions;* Separate disclosure for each category of related party. *In respect to the 4(b), the types of transactions disclosed can include: Purchase/sales and lease of goods, property and other assets Rendering or receiving of goods, services, property and other assets. Guarantees given or received Commitments
AASB124-Related-Party-Disclosures-Guide.DOCX