PAS 24

RELATED PARTY
DISCLOSURES
Introduction
PAS 24 prescribes the guidelines in identifying related party
relationships, transactions, outstanding balances and commitments,
abd the necessary disclosures for these items.

Jollibee Foods Corporation-parent company

Chowking, Greenwich, Red Ribbon, Burger King and Mang Inasal-
subsidiaries
*referred to as Jollibee Group
 Related Party disclosures are necessary because of the possibility that
ab entity's financial position and performance might have been affected
by the existence of the relationship

Users of financial statements need information on related party

relationships, transactions, outstanding balances and commitments to
help them better assess the risks and opportunities surrounding the
entity
 Who are not
Related Parties?
Two entities with a director or other
Key Management Personnel (KMP) in
common

Two venturers in control of a Joint

Venture (co-venturers)

Providers of finance

trade unions

public utilities
 government agencies or departments

that do not control, jointly control

or significantly influence the repor-
ting entity but may place some restrictions

 Major customers, suppliers,

franchisers, disributors and general
agents

simply because of economic dependence

 s re
i e la
art te
d
p pa
ted rt
la ie
re s

A Co. B Co.
Not related
Disclosure
Relationships between Parents and Subsidiaries

Regardless of whether there have been

transactions

 Name of parent
 Ultimate controlling party (if different)
 Most senior parent ( if neither of the two
prepares consolidated FS for public use)
Key Management Personnel Compensation

Disclose in total for the following categories:

All employee benefits:

 Short-term employee benefits
 post-employment employee benefits
 other long term employee benefits
 termination benefits
 share-based payments
Related Party Transactions

 Nature of the related party relationship

 Nature, terms and amount of the transaction and
outstanding balances
 Doubtful debts recognized on the outstanding
balances

Related party transactions and their outstanding balances

are disclosed in an entity’s separate or individual financial
statement.
Disclosures are eliminated in the consolidated financial
statements.
Government-Related Entities

Government-related entity is an entity that is

controlled, jointly controlled or significantly
influenced by a government.

 Name of the government and the nature of the

relationship
 Nature and amount of each individually significant
transaction
 Other transactions that are collectively significant but
are individually insignificant