The AASB 124 Related Party Disclosures guidelines are provided to assist Victorian government departments and other public sector entities with their implementation process for year-end reporting.
The objective of AASB 124 is to ensure that the department’s or entity’s financial statements contain disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties, and by transactions and outstanding balances, including commitments, with such parties.
The Australian Accounting Standards Board (AASB) recently extended the scope of AASB 124 Related Party Disclosures to include not-for-profit (NFP) public sector entities.
This revised reporting requirement will apply to departments and not-for-profit agencies for the first time from 1 July 2016 (i.e. from the 2016-17 financial year), with no comparatives required for the first period to which these changes apply. As a result, all NFP public sector entities will be required to disclose related party transactions in the same way as private sector entities.
The AASB 124 Related Party Disclosures guidelines are available for download.