Applying some of the concepts of IFRS 9 in related party situations You’ll recall that under the model in IFRS 9, a financial asset is measured at amortized cost only when it’s held within a business model with the objective of holding financial assets in order to collect contractual cash flows, and the asset’s contractual…
Here’s another issue considered in the past by CPA Canada’s IFRS Discussion Group: “An entity may settle a loan due to a shareholder by the issuance of the entity’s equity instruments (for example, common shares). This transaction may give rise to a difference between the carrying amount of the shareholder loan and the fair value…
The OSC has issued OSC Staff Notice 51-723 Report on Staff’s Review of Related Party Transaction Disclosure and Guidance on Best Practices. Here’s the high-level summary from the news release: “A Related Party Transaction (RPT) is a normal feature of business, and occurs between an issuer and a related party of the issuer at the…
A European example of related party disclosures omitted from interim financial statements Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 13th edition: “The issuer manufactures industrial metals. One major shareholder owned…
In its recent Annual Improvements to IFRSs: 2010-2012 cycle, the IASB has returned to the IAS 24 requirement to disclose compensation paid to key management personnel. I’ve written in the past that this seems to me one of the least useful disclosures in all of IFRS – it’s very difficult to see how anything coming…
John Hughes IFRS Blog 