FRSC Adopts Revised Standard on Related Party Disclosures (05-10)

May 2010


The Financial Reporting Standards Council (FRSC) approved in its meeting in March 2010 the adoption of revised IAS 24, Related Party Disclosures, issued by the International Accounting Standards Board (IASB), as revised Philippine Accounting Standard (PAS) 24.

The standard was revised in response to concerns that the previous disclosure requirements and the definition of a ‘related party’ were too complex and difficult to apply in practice, especially in environments where government control is pervasive.

The revised standard addresses these concerns by providing a partial exemption for government-related entities and by providing by simplifying the definition of a related party and removing inconsistencies.

The revised standard is effective for annual periods beginning on or after January 1, 2011, with earlier application permitted.

The FRSC has submitted revised PAS 24 to the Board of Accountancy for approval.