Disclosure standards - part 1

In this lesson

1. 0:00 Disclosure standards overview
2. 1:20 Related party definition and rationale
3. 5:00 Identifying related parties in practice
4. 8:50 Disclosure requirements for related parties
5. 12:01 Earnings per share coming next

About this lesson

This video covers IAS 24 Related Party Transactions, exploring the definition of a related party (anyone with common control, significant influence, or shared key management), the rationale for disclosure (protecting users from non-arm's length transactions that could distort figures), and practical examples of identifying related and non-related parties. Understanding related party disclosures is essential for Financial Reporting papers and helps ensure financial statements remain transparent and reliable for decision-makers. This is part one of disclosure standards, focusing specifically on IAS 24. You'll work through a detailed narrative example involving an executive director, shareholders, suppliers, and related entities to practise identifying which relationships require disclosure. The video emphasises that related party transactions must be owned up to and explained fully—including the names of parties involved, the nature of relationships, transaction values, and any outstanding balances—so that users of financial statements can assess whether transactions were conducted on commercial terms. This foundation prepares you for the disclosure requirements you'll encounter in exam questions and real-world reporting scenarios.

Duration: 12m