Section 33 – 33.1 Scope

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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

33.3.1 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.

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Section 33: Related Party Disclosures

33.1 Scope

Section 33 requires an entity to include in its financial statements the disclosures necessary to draw attention to the possibility that its financial position and profit or loss have been affected by the existence of related parties and by transactions and outstanding balances with such parties. It provides details on the disclosures required where such related party transactions exist.

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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.