IASB proposes changes to IAS 24...

Plans to simplify reporting requirements for state-controlled entities have been issued.

The International Accounting Standards Board (IASB) proposes that such bodies should be exempt from International Accounting Standard (IAS) 24 Related Parties Disclosures.

Under the terms of IAS 24, reporting entities have to provide disclosures about transactions with related parties.

However, the IASB points out that for state-controlled entities this can be a difficult and costly process.

Under the proposed changes, such entities would be exempt from providing full details about their transactions with other state-controlled bodies.

Instead they would have to provide general disclosures about the types and extent of significant transactions.


Comments on the proposed amendment are being invited by the IASB.

The body is keen to hear from respondents as to whether they think the change would provide analysts and investors with the information they need without imposing too great a burden on the preparers of financial statements.

Recently, the IASB and US Financial Accounting Standards Board set up a task force aimed at improving financial reporting in light of the global economic crisis.