Impact of AASB 124 Related Party Disclosures on Public Sector Entities

AASB 124 Related Party Disclosures came into effect on 1 July 2016 for not-for-profit public sector entities. The purpose of disclosures about related parties is that knowledge of an entity’s financial relationships with related parties may affect how a user of the financial statements assesses an entity, including the appropriateness of its transactions with, and exposures to, related parties.

Although many public sector entities, such as departments and statutory bodies, have been disclosing compensation paid to key management personnel (KMP) for many years, these disclosures will be new for some entities such as local governments.

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