Related party—parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions.

Related party transactions—a transfer of resources or obligations between related parties, regardless of whether a price is charged.

 A party is related to an entity if it:

• Directly or indirectly, controls, is controlled by, or is under common control with,
• The entity;
• Has significant influence over the entity;
• has joint control over the entity;
• Is a close member of the family of any individual who controls, or has significant
• Influence or joint control over, the entity;
• Is an associate of the entity;
• Is a joint venture in which the entity is a venturer;
• Is a member of the key management personnel of the entity or its parent;
• Is a close member of the family of any of the aforementioned key management Personnel;
• Is an entity that is controlled, jointly controlled or significantly influenced by, or For which significant voting power in such entity resides with, any of the key
• Management personnel or their close family members;
• Is a post-employment benefit plan for the benefit of employees of the entity, or of

Any of its related parties.
 

IAS 24 requires the following related party disclosures:

• Nature of relationships between parents and subsidiaries, even if there were no transactions between those related parties;
• The name of the entity’s parent and, if different, the ultimate controlling party;
• Compensation of key management personnel;
• If there have been transactions between related parties, the nature of the relationship and information about the transactions and outstanding balances with related parties. Such disclosures are made separately for each of the following categories: the parent; entities with joint control or significant influence over the entity; subsidiaries; associates; joint ventures in which the entity is a venturer; key management personnel; and other related parties.