[et_pb_section bb_built=”1″ admin_label=”Header – All Pages” transparent_background=”off” background_color=”#1e73be” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” custom_padding=”0px||0px|” next_background_color=”#000000″ custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” global_module=”1221″][et_pb_row admin_label=”row” global_parent=”1221″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” custom_padding=”||5px|” allow_player_pause=”off” parallax=”off” parallax_method=”on” make_equal=”off” parallax_1=”off” parallax_method_1=”off” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_padding=”10px|||” parallax=”on” background_color=”rgba(255,255,255,0)” /][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”30px||0px|” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” background_color=”#1e73be” prev_background_color=”#000000″ next_background_color=”#ffffff” custom_padding_tablet=”0px||0px|” global_module=”1228″][et_pb_row global_parent=”1228″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” custom_padding=”30px||0px|” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”] [breadcrumb] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Video Heading – Sections” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”#ffffff” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” prev_background_color=”#1e73be” next_background_color=”#1e73be”][et_pb_row make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” parallax_2=”off” parallax_method_2=”off” column_padding_mobile=”on” background_color=”#c6c6c6″ custom_padding=”10px|10px|10px|10px” padding_top_1=”20px” padding_top_2=”20px” padding_left_1=”10px” padding_right_2=”10px” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”1_2″][et_pb_text admin_label=”Section Introduction Video Heading” background_layout=”dark” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” text_text_color=”#ffffff” background_color=”#1e73be” custom_padding=”0px||0px|20px” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

Section 33 – Introduction

[/et_pb_text][et_pb_video_slider admin_label=”Video File – Section Introduction” show_image_overlay=”on” show_arrows=”on” show_thumbnails=”on” controls_color=”light”][et_pb_video_slider_item admin_title=”Section Video Introduction” background_layout=”dark” src=”https://vimeo.com/151618515/”] [/et_pb_video_slider_item][/et_pb_video_slider][/et_pb_column][et_pb_column type=”1_2″][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” background_color=”#1e73be” prev_background_color=”#ffffff” next_background_color=”#ffffff” global_module=”1425″][et_pb_row global_parent=”1425″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”0px||0px|” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” padding_top_1=”0px” padding_bottom_1=”0px” parallax_2=”off” parallax_method_2=”off” padding_top_2=”0px” padding_bottom_2=”0px” parallax_3=”off” parallax_method_3=”off” padding_top_3=”0px” padding_bottom_3=”0px” column_padding_mobile=”on” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”1_3″][et_pb_toggle admin_label=”New Section In Current Tab” global_parent=”1425″ title=”New Section In Current Tab” open=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

[/et_pb_toggle][/et_pb_column][et_pb_column type=”1_3″][et_pb_toggle admin_label=”All Downloads” global_parent=”1425″ title=”All Downloads” open=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

[/et_pb_toggle][/et_pb_column][et_pb_column type=”1_3″][et_pb_toggle admin_label=”New Section in New Tab” global_parent=”1425″ title=”New Section in New Tab” open=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

[/et_pb_toggle][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” prev_background_color=”#1e73be” next_background_color=”#000000″][et_pb_row global_parent=”1284″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_divider global_parent=”1284″ color=”#1e73be” show_divider=”on” divider_style=”solid” divider_position=”top” divider_weight=”1″ hide_on_mobile=”on” disabled_on=”on|on|off” /][et_pb_text admin_label=”Section Downloads Heading” global_parent=”1284″ background_layout=”light” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_padding=”0px||0px|” custom_margin=”0px||0px|” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

Section Downloads

[/et_pb_text][et_pb_tabs admin_label=”Section Downloads” global_parent=”1284″ use_border_color=”off” background_position=”top_left” background_repeat=”repeat” background_size=”initial” _builder_version=”3.0.106″][et_pb_tab _builder_version=”3.0.106″ title=”Index” use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” tab_text_shadow_style=”none” body_text_shadow_style=”none”]

Contents

33.1 Scope.

33.2 Exclusions from Section 33 requirements – Wholly owned entities within the group.

33.2.1 Extract from FRS102: Section 33.1A.

33.2.2 OmniPro comment

33.3 Related party defined – Persons/Individuals.

33.3.1 Extract from FRS102: Section 33.2(a)

33.3.2 OmniPro comment

33.3.2.1 Overview.

33.3.2.2 Persons of close members of that person’s family.

33.3.2.2.1 Control, joint control and significant influence.

33.3.2.2.2 Close family members defined.

33.2.2.3 Key management personnel

33.2.2.4 Examples of close family members.

33.4 Related party defined – Entities.

33.4.1 Extract from FRS102: Section 33.2 (b) and Section 33.4.

33.4.2 OmniPro comment

33.4.2.1 Overview.

33.4.2.2.1 Entities are members of a group.

33.4.2.2.2 One entity is an associate or joint venture of the other or one entity is a joint venture of a third entity and the other entity is an associate of the third party.

33.4.2.2.3 Both entities are joint venture of the same third party.

33.4.2.2.4 Entity is controlled by a person that has control or significant influence or joint control or is a member of key management over/in the reporting entity.

33.4.2.2.5 Person has control or joint control of the reporting entity has significant influence over the other entity or is a member of key management personnel of the other entity.

33.4.2.2.6 Transactions with a subsidiary of a joint venture or associate.

33.4.2.2.7 Pension funds.

33.4.2.2.8 Provision of managements services by an entity or any member of a group of which it is part to the reporting entity or to the parent of the reporting entity.

33.5 Specific related party exclusions.

33.5.1 Extract from FRS102: Section 33.3-33.4.

33.5.2 OmniPro comment

33.5.2.1 Overview.

33.5.2.2 Relationships that are not related parties.

33.6 Disclosures.

33.6.1 Disclosure of parent-subsidiary relationships.

33.6.1.1 Extract from FRS102: Section 33.5.

33.6.1.2 OmniPro comment

33.6.2 Disclosure of key management personnel compensation.

33.6.2.1 Extract from FRS102: Section 33.6 – Section 33.7.

33.6.2.2 OmniPro comment.

33.6.2.2.1 Key management personnel defined.

33.6.2.2.2 Key management personnel and directors remunerated by other groups entities or shareholders – the disclosures.

33.6.2.2.2.1 Directors duties merely incidental and incurred by parent entity.

33.6.2.2.2.1.1 Possible disclosure in financial statements where directors duties are incidental

33.6.2.2.3 Sample key management personnel disclosure.

33.6.3 Disclosure of related party transactions.

33.6.3.1 Extract from FRS102: Section 33.8-33.14.

33.6.3.2 OmniPro comment.

33.6.3.2.1 Overview.

33.6.3.2.2 Rules on disclosure of items being on an arm’s length basis.

33.6.3.2.3 Disclosures where subsidiaries/ associates/ joint ventures acquired or disposed of in the period

33.6.3.2.4 Examples of related parties to be disclosed.

33.6.3.2.5 Illustrations of the related parties required by Section 33.8 to 33.14 of FRS102.

[/et_pb_tab][et_pb_tab title=”Quick Guide” tab_font_select=”default” body_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em” _builder_version=”3.0.106″ use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” tab_text_shadow_style=”none” body_text_shadow_style=”none” tab_text_shadow_horizontal_length=”0em” tab_text_shadow_vertical_length=”0em” tab_text_shadow_blur_strength=”0em” body_text_shadow_horizontal_length=”0em” body_text_shadow_vertical_length=”0em” body_text_shadow_blur_strength=”0em”]

Downloads


Section 33 Relates Party Disclosures Quick Guide (PDF) (134 downloads )

Summary

Section 33 deals with disclosures required for all related party transactions and includes the definition of related parties.

What is new?

Section 33.10 requires related party transactions to be disclosed separately for each of the below categories whereas old GAAP allowed these to be aggregated:

What is different?

Section 33 requires the disclosure for pension contributions paid into a pension fund. There was no such requirement under old GAAP (FRS 8) however it was required under FRS 17 so it would have been disclosed in any event.

Section 33 requires disclosure of key management personnel compensation in total. This is in additional to the requirements of Company Law in relation to directors remuneration and transactions with connected persons.

The section also provides no exemption on the grounds of confidentiality. Under old GAAP, disclosure was not required on the basis of confidentiality which was imposed by statute or company law.

Section 33.11 provides an exemption from disclosure about related party transactions with a related party that is a state (a national regional or local government) that has control, joint control or significant influence over the reporting entity.

What are the key points?

A related party is a person or entity that is related to the entity that is preparing its financial statements (the reporting entity). Section 33.2 provides a detailed definition of related parties:

  1. A person or a close member of that person’s family is related to a reporting entity if that person:
    • has control or joint control over the reporting entity;
    • has significant influence over the reporting entity; or
    • is a member of the key management personnel of the reporting entity or of a parent of the reporting
  1. An entity is related to a reporting entity if any of the following conditions apply:
    • the entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
    • one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
    • both entities are joint ventures of the same third party.
    • one entity is a joint venture of a third entity and the other entity is an associate of the third entity.
    • the entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
    • the entity is controlled or jointly controlled by a person identified in (a).
    • a person identified in (a)(i) has significant influence over the entity or is a
    • member of the key management personnel of the entity (or of a parent of the entity)
    • the entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

Disclosures are not required of transactions between group members, providing that any subsidiary involved is wholly owned (Section 33.1A).

Disclosure required of the name of the parent entity and if different, the ultimate controlling party.

What do accountants need to do?

Be aware of the differences between old GAAP and Section 33 mentioned above and ensure FRS 102 financial statements are compliant with these additional disclosures. Advise clients of the additional disclosures that are required.

what do Companies need to do?

Be aware of the differences between old GAAP and Section 33 mentioned above and ensure FRS 102 financial statements are compliant with these additional disclosures.

[/et_pb_tab][et_pb_tab title=”Practical Examples” tab_font_select=”default” body_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em” _builder_version=”3.0.106″ use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” tab_text_shadow_style=”none” body_text_shadow_style=”none”]

Examples

Example 1: Wholly owned group exemption. 

Example 2: Group exemption. 

Example 3: Close family members. 

Example 4: Close family members. 

Example 5: entities are members of a group (Section 33.2(b)(I of FRS 102)) 

Example 6: One entity is an associate or joint venture of the other or one entity is a joint venture of a third entity and the other entity is an associate of the third party (Section 33.2(b)(ii) & (iv) 

Example 7: Both entities are joint venture of the same third party (Section 33.2(b)(iii)) 

Example 8: Entity is controlled by a person that has control or significant influence or joint control or is a member of key management over/in the reporting entity, (Section 33.2(b)(vi)) 

Example 9: Person (has control or joint control of the reporting entity) has significant influence over the other entity or is a member of key management personnel of the other entity (Section 33.2(b)(vii) of FRS102. 

Example 10: Transactions with a subsidiary of a joint venture or associate. 

Example 11: Pension funds (Section 33.2(b)(v)of FRS102) 

Example 12: Provision of managements services by an entity or any member of a group of which it is part to the reporting entity or to the parent of the reporting entity (Section 33.2 (viii) of FRS102) 

Example 13: Extract from notes to the financial statements. 

Example 14: Extract from notes to the financial statements. 

Example 15: Extract from the notes to the financial statements. 

Example 15A: Disclosure of amounts due from/to group entities and related party balances including amounts due to/from directors. 

[/et_pb_tab][et_pb_tab _builder_version=”3.0.106″ title=”Detailed Guide” use_background_color_gradient=”off” background_color_gradient_start=”#2b87da” background_color_gradient_end=”#29c4a9″ background_color_gradient_type=”linear” background_color_gradient_direction=”180deg” background_color_gradient_direction_radial=”center” background_color_gradient_start_position=”0%” background_color_gradient_end_position=”100%” background_color_gradient_overlays_image=”off” parallax=”off” parallax_method=”on” background_size=”cover” background_position=”center” background_repeat=”no-repeat” background_blend=”normal” allow_player_pause=”off” background_video_pause_outside_viewport=”on” tab_text_shadow_style=”none” body_text_shadow_style=”none”]


Section 33 Related Party Disclosures Detailed Guide (PDF) (240 downloads )

[/et_pb_tab][et_pb_tab title=”Difference Guide” tab_font_select=”default” body_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em” _builder_version=”3.0.106″]

 

 

Downloads 


FRS 102 35 Part Differences Quick Guide (859 downloads )


FRS 102 35 Part Differences Guide (581 downloads )

 


FRS 102 Differences on Transition Checklist (1119 downloads )

 


FRS 102 Differences on Transition Examples Appendix (1092 downloads )

 


Fillable Differences on Transition Checklist (866 downloads )

Website Links

Difference Guide – Related Party Disclosures

[/et_pb_tab][et_pb_tab title=”Disclosures” tab_font_select=”default” body_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em” _builder_version=”3.0.106″]

 

 

Downloads  


Section 33 Disclosure Examples (129 downloads )


FRS 102 Disclosure Checklist (PDF) (745 downloads )

Website Links

Disclosure Checklist

[/et_pb_tab]

[/et_pb_tabs][et_pb_divider global_parent=”1284″ color=”#1e73be” show_divider=”on” divider_style=”solid” divider_position=”top” divider_weight=”1″ hide_on_mobile=”on” disabled_on=”on|on|off”]

[/et_pb_divider][/et_pb_column][/et_pb_row][et_pb_row global_parent=”1284″ background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][/et_pb_column][/et_pb_row][/et_pb_section]