PAGE1

FI
NANCI
ALACCOUNTI
NGANDREPORTI
NG

RELATEDPARTYDI
SCLOSURES

Obj
ect
iveofPAS24

The obj
ecti
ve ofPAS 24 i sto ensurethatan enti
ty'
sfinancialst
atements contai
nt he
di
scl
osuresnecessaryt
odr awatt
entiont
othepossi
bil
it
ythatit
sfinanci
alposi
ti
onandpr ofi
tor
l
ossmayhav ebeenaf fectedbytheexistenceofrel
atedparti
esandbyt ransact
ionsand
out
standi
ngbalanceswit
hsuchpar t
ies.

Rel
atedPar
ti
es

Part
iesareconsideredtober el
atedifonepart
yhastheabil
i
tytocont
rolt
heotherpart
yorto
exer
cisesigni
fi
canti nf
luenceorj oi
ntcontr
olovertheotherpar
tyinmakingf i
nanci
aland
oper
atingdeci
sions.Apar t
yisrel
atedtoanenti
tyi
f:

(
a)Di
rect
ly,
ori
ndi
rect
lyt
hroughoneormor
eint
ermedi
ari
es,
thepar
ty:

(
i)Cont r
ols,iscont roll
edby,orisundercommoncont rolwit
h,t
heenti
ty(t
hisi
ncl
udes
par
ents,subsi di
ariesandfel
l
owsubsi di
ari
es)
(
ii
)Hasani nteresti
nt heenti
tythatgi
vesitsi
gni
fi
canti
nfl
uenceovert
heent
it
y
(
ii
i) Hasjoi ntcontrolovert
heent i
ty

(
b)Thepar
tyi
sanassoci
ateoft
heent
it
y

(
c)Thepar
tyi
saj
ointv
ent
urei
nwhi
cht
heent
it
yisav
ent
urer

(
d)Thepar
tyi
samemberoft
hekeymanagementper
sonnel
oft
heent
it
yori
tspar
ent
;

(
e)Thepart
yisacl
osememberoft
hef
ami
l
yofanyi
ndi
vi
dualr
efer
redt
oin(
a)or(
d).They
mayincl
ude

a.Thei ndiv
idual
’
sdomest i
cpartnerandchildr
en
b.Childrenoftheindi
vidual
’sdomest i
cpartner
c. Dependantsoftheindivi
dualortheindi
vi
dual’sdomest
icpar
tner

(
f)Thepartyi
sanent i
tythatiscont
rol
l
ed,j
oint
lycont
rol
l
edorsi
gnif
icant
lyi
nfl
uencedbyor
forwhichsi
gnif
icantvoti
ngpowerinsuchentit
yresi
deswit
h,di
rectl
yorindi
rect
ly,any
i
ndivi
dualr
efer
redtoin(d)or(e)
(
g)Thepart
yisapost-
employmentbenef
itpl
anforthebenef
itofempl
oyeesoft
heent
it
y,or
ofanyent
it
ythati
sarel
atedpart
yoftheenti
ty.

Thef
oll
owi
ngar
enotnecessar
il
yrel
atedpar
ti
es

 Twoent
erpr
isessi
mpl
ybecauset
heyhav
eadi
rect
ororkeymanageri
ncommon

 Twov
ent
urer
swhoshar
ejoi
ntcont
rol
overaj
ointv
ent
ure

 Pr
ovi
der
s off
inance,t
rade uni
ons,publ
i
c ut
il
it
ies,gov
ernmentdepar
tment
s and
agenci
esi
nthecour
seoft
hei
rnor
mal
deal
i
ngswi
thanent
erpr
ise

 Asi
ngl
ecust
omer
,suppl
i
er,f
ranchi
ser
,di
str
ibut
or,orgener
alagentwi
thwhom an
enter
pri
setransact
sasi gni
fi
cantv
olumeofbusi
nessmer
elybyv
irt
ueoft
her
esul
ti
ng
economicdependence.

Rel
atedPart
yTr ansact
ions-Isat r
ansferofresour
ces,ser
vices,orobl
i
gat
ionsbet
weenr
elat
ed
par
ti
es,r
egardl
essofwhet herapr
iceischar
ged.

10/
16-
13
 PAGE2

Di
scl
osur
es

Rel
ati
onshi
psbet
weenpar
ent
sandsubsi
diar
ies
 Regardlessofwhet herther
ehavebeent r
ansact
ionsbetweenapar entandasubsi di
ary,
anent i
tymustdi sclosethenameofi t
sparentand,ifdif
fer
ent,t
heul t
imatecontr
oll
ing
part
y.
 Ifneitherthe ent i
ty'
s par
entnort he ul
ti
mate control
li
ng par
ty produces f
inancial
stat
ement savail
ableforpubli
cuse,
thenameoft henextmostseniorparentt
hatdoesso
mustal sobedisclosed.

ManagementCompensat
ion-Discl
osekeymanagementper
sonnelcompensat
ioni
ntot
aland
f
oreachofthef
oll
owi
ngcategor
ies:
 Short
-term employeebenefi
ts
 Post-
empl oymentbenefit
s
 Otherlong-t
erm benefi
ts
 Terminati
onbenef i
ts
 Equit
ycompensat ionbenefi
ts.

Keymanagementper sonnelar
ethoseper
sonshavi
ngauthori
tyandr esponsi
bil
i
tyf
orplanni
ng,
dir
ect
ing,andcontr
oll
ingtheacti
vi
ti
esoftheent
it
y,di
rect
lyorindi
rectl
y,incl
udi
ngalldi
rect
ors
(whet
herexecut
iveorother
wise)
.

Relat
edpar tyt
ransacti
ons-Iftherehavebeentransact
ionsbet
weenr el
atedparti
es,discl
osethe
nature ofthe rel
ated par
tyr el
ati
onshi
p as wellas infor
mati
on aboutt he t
ransacti
ons and
outstandi
ngbalancesnecessaryforanunder
standingofthepot
entialeff
ectofther el
ati
onshi
pon
thefi
nancialst
atements.Thesediscl
osur
eswouldbemadesepar atelyforeachcategoryofrel
ated
parti
esandwoul dincl
ude:

 Theamountoft
het
ransact
ions.

 Theamountofout
standi
ngbal
ances,
incl
udi
ngt
ermsandcondi
ti
onsandguar
ant
ees.

 Pr
ovi
sionsf
ordoubt
ful
debt
srel
atedt
otheamountofout
standi
ngbal
ances.

 Expenser
ecogni
zeddur
ingt
heper
iodi
nrespectofbadordoubt
fuldebt
sduef
rom
r
elat
edpar
ti
es.

Exampl
esoft
heKi
ndsofTr
ansact
ionst
hatAr
eDi
scl
osedI
fTheyAr
ewi
thaRel
atedPar
ty

 Pur
chasesorsal
esofgoods.

 Pur
chasesorsal
esofpr
oper
tyandot
herasset
s.

 Render
ingorr
ecei
vi
ngofser
vices.

 Leases.

 Tr
ansf
ersofr
esear
chanddev
elopment
.

 Tr
ansf
ersunderl
i
censeagr
eement
s.

 Tr
ansf
ersunderf
inancear
rangement
s(i
ncl
udi
ngl
oansandequi
tycont
ri
but
ionsi
ncash
ori
nki
nd)
.

 Pr
ovi
sionofguar
ant
eesorcol
l
ater
al.

 Set
tl
ementofl
i
abi
l
iti
esonbehal
foft
heent
it
yorbyt
heent
it
yonbehal
fofanot
herpar
ty

Astat
ementthatrelat
edpartyt
ransact
ionswer
emadeontermsequi
valentt
othoset
hatpr
evai
lin
ar
m'slengt
htransacti
onsshoul
dbemadeonl yi
fsucht
ermscanbesubstant
iat
ed.

10/
16-
13
 PAGE3
--END--

10/
16-
13