Related Party Transactions & Disclosures: Ias 24 And Beyond

Related party transactions and disclosures with insights into IAS 24, Indian Companies Act, and SEBI guidelines.

What you'll learn

Understanding Related Party Transactions: Learn the definition and significance of related parties, including individuals and entities.

IAS 24 Disclosure Requirements: Gain expertise in the guidelines for related party transactions under IAS 24, including proper disclosure practices.

Arms-Length Transactions: Understand the concept of arms-length transactions and pricing, ensuring that transactions are conducted fairly and transparently.

Role of Audit Committee: Learn the audit committee's role in overseeing related party transactions and ensuring proper governance.

Regulatory Frameworks: Examine the Indian Companies Act 2013 and SEBI’s Clause 49 to understand their impact on related party transactions.

Practical Examples: Study real-life examples of related party transactions from companies like Wipro and HUL, applying theoretical knowledge.

Compliance and Risk Management: Understand the importance of compliance with related party transaction regulations and how to mitigate related risks.

Requirements

Basic Knowledge of Accounting: A foundational understanding of accounting principles is recommended to grasp the concepts of related party transactions and financial disclosures.

Familiarity with Financial Statements: Students should be comfortable reading and interpreting financial statements, as related party transactions are often disclosed in these documents.

Understanding of Corporate Governance: A general awareness of corporate governance structures, including the role of audit committees, will be helpful for understanding the course material.

Introductory Knowledge of International Financial Reporting Standards (IFRS): While the course will cover IAS 24, familiarity with IFRS concepts, especially disclosure requirements, will make the learning process smoother.

Interest in Corporate Law and Regulations: An interest in the legal frameworks governing companies, especially the Indian Companies Act and SEBI guidelines, will enhance the learning experience.

Description

Understanding related party transactions is crucial for ensuring transparency and compliance in financial reporting. This course is designed to provide a comprehensive overview of related party transactions, focusing on the disclosure requirements under IAS 24, as well as key regulations from the Indian Companies Act and SEBI’s Clause 49. Participants will learn how to recognize related parties, manage related party transactions, and understand the role of auditors and compliance committees in maintaining proper governance. Through case studies and practical examples, students will gain hands-on experience in applying these concepts to real-world scenarios.Section 1: IntroductionThe course begins by introducing the concept of related parties and their relevance in financial reporting. Students will gain an understanding of how related party transactions can influence business decisions, financial disclosures, and governance. This section sets the foundation for further exploration into the regulatory frameworks that govern these transactions.Section 2: Meaning of Related PartiesIn this section, students explore the definitions and criteria used to identify related parties. They will learn about the various categories of related parties, including individuals and entities, and how these relationships are determined. The section also covers the importance of identifying related parties accurately to ensure compliance with accounting standards and regulations.Section 3: Related TransactionsThis section delves into the specifics of related party transactions, focusing on what constitutes such transactions and what exclusions may apply. Students will study the provisions of IAS 24 and gain insights into how related party transactions are handled in financial statements. Practical examples are provided to illustrate the correct accounting treatment and disclosure of these transactions in compliance with IAS 24.Section 4: IAS 24 DisclosuresBuilding on the understanding of related party transactions, this section focuses on the detailed disclosure requirements set out by IAS 24. Students will learn how to prepare and present disclosures, ensuring transparency and compliance. The section includes practical exercises to apply the IAS 24 disclosure requirements to various scenarios, helping students gain confidence in handling related party disclosures.Section 5: Arm’s Length TransactionsThe concept of arm’s length transactions is crucial in determining whether related party transactions have been conducted on fair terms. In this section, students will learn what arm’s length pricing means and how it is applied in financial reporting. Case studies and examples are used to demonstrate the implications of pricing arrangements between related parties, with a focus on ensuring that these transactions reflect market conditions.Section 6: Role of Audit CommitteeThis section explores the role of the audit committee in monitoring and reviewing related party transactions. Participants will learn about the responsibilities of the audit committee in ensuring the integrity of financial reporting and compliance with governance standards. The section also covers the audit committee’s role in approving related party transactions and ensuring they are conducted in the best interests of the company and its stakeholders.Section 7: Companies ActIn this section, the course shifts its focus to the Indian regulatory framework, particularly the Companies Act 2013. Students will explore the key provisions of the Act that govern related party transactions, along with SEBI’s Clause 49. This section emphasizes the practical implications of these regulations for companies operating in India, with discussions on compliance strategies and key considerations for private companies.Section 8: Case Studies - Wipro and HULTo bring all the theoretical concepts together, this section presents case studies of two major Indian corporations: Wipro and Hindustan Unilever (HUL). By analyzing the related party transactions of these companies, students will see how the principles of IAS 24 and the Indian Companies Act are applied in real-world situations. The case studies will also highlight the challenges and considerations involved in managing related party transactions within large corporations.Conclusion:By the end of the course, participants will have a strong understanding of related party transactions, their impact on financial reporting, and the regulations that govern them. They will be equipped to identify related parties, manage transactions appropriately, and ensure compliance with both international and local standards. The knowledge gained in this course will help finance professionals, auditors, and compliance officers enhance transparency and governance in their organizations.

Overview

Section 1: Introduction

Lecture 1 Introduction to Related Parties

Section 2: Related Parties Meaning

Lecture 2 Meaning of Related Parties

Lecture 3 Related Parties Continues

Lecture 4 Related Parties Individuals

Section 3: Related Transactions

Lecture 5 Related Parties Exclusions

Lecture 6 Related Parties Transactions

Lecture 7 Related Parties IAS24

Lecture 8 Working on Example 1 IAS24

Lecture 9 Working on Example 2 IAS24

Section 4: IAS 24 Disclosures

Lecture 10 Disclosures IAS 24

Lecture 11 Working on Example 3

Lecture 12 Working on Example 4

Section 5: Arms Length Transaction

Lecture 13 Arms Length Transaction

Lecture 14 Arms Length Pricing

Lecture 15 Working on Example 6

Section 6: Role of Audit Committee

Lecture 16 Role of Audit Committee

Lecture 17 Related Parties Google

Lecture 18 Related Party Transactions

Section 7: Companies Act

Lecture 19 Indian Companies Act 2013

Lecture 20 Indian Companies Act Continues

Lecture 21 Key Implications Under Companies Act

Lecture 22 Application to Private Company

Lecture 23 SEBIs Clause 49

Section 8: Wipro and HUL

Lecture 24 Related Parties Wipro

Lecture 25 Related Parties HUL

Accounting and Finance Professionals: Those working in accounting, auditing, and financial reporting will benefit from learning about related party transactions, IAS 24 disclosures, and their impact on financial statements.,Corporate Governance Practitioners: Individuals involved in corporate governance, compliance, and internal control will gain valuable insights into the role of audit committees and regulatory frameworks.,Legal and Compliance Officers: Professionals working in legal, compliance, and regulatory roles will find the course beneficial for understanding the legal requirements surrounding related party transactions under Indian and international standards.,Management and Business Consultants: Business consultants and managers who need to navigate related party disclosures and ensure compliance with accounting standards will benefit from the practical examples provided in the course.,Students of Accounting, Finance, and Business Law: The course is also suitable for students who are looking to specialize in corporate accounting, finance, and regulatory frameworks, offering them a solid understanding of related party transactions.,Investors and Analysts: Those involved in financial analysis and investment decisions will benefit from understanding the importance of related party transactions and disclosures in assessing the financial health and governance of companies.