IAS 24:
A) prescribes how transactions with related parties are to be measured;
B) defines the recognition criteria of related party transactions;
C) explains the format of financial statements of entities with related parties;
D) deals purely with related party disclosures.

Question

Quizplus · Accepted Answer

IAS 24 deals solely with related party disclosures, including the disclosure of the nature of the related party relationship, the related party transactions and outstanding balances, and any significant terms and conditions of those transactions. It does not prescribe how these transactions are to be measured or define their recognition criteria. While related party transactions may impact the financial statements, IAS 24 does not provide guidance on the format of financial statements for entities with related parties.