MPERS Section 33 Related party disclosures

MPERS Section 33 Related party disclosures
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MPERS Section 33 Related party disclosures

My auditor is so annoying! Every time audit needs to ask me to confirm related party balances and transactions and force me to disclose them in my financial report.


Malaysian Private Entity Reporting Standard (MPERS) Section 33 has clearly stated that the Company should disclose anything that involves related parties which have affected the Company’s financial position and its profit and loss in its financial statement.

Who are the Related Party?

1. Parent and subsidiary relationship

2. Subsidiaries of Common parent company

3. Associates

4. Joint ventures Entities

5. Key management personnel with significant influence

6. A close family to the key management personnel

100% related party if two entities have a common director?

1. Assessment of the extent of the relationships is required (MEPRS 33.3) to determine whether the director has significant influence in both entities (MPERS 33.2) instead of judging on its legal title.

2. Hence, the two companies are not necessarily related parties even though they have common directors.

What disclosures are required for related parties at the reporting entity’s year ended?

1. Nature of related party relationship

2. Type of transactions

3. Value of transactions

4. Outstanding balance between related parties and its terms and conditions

What are the examples of the transactions?

1. Sales and purchase of goods

2. Rendering or receiving any form of services

3. Acquisition and disposal of assets

4. Use of assets by way of lease arrangement

5. Borrowings, lending, and guarantees provided for/to

6. Others


MPERS Section 33 Related party disclosures:

- https://c0aa0d68-de31-44c8-bb40

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