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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://www.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button] [/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”https://uk.frs102.com/members/premium-toolkit/section-33/” type=”big” color=”red”] Return to Section 33 Home[/button] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Example 13: Extract from the notes to the financial statements
Related party transactions
| Sales to related party | Purchases from related party | Amounts owed from related party | Amounts owed to related party | |
| € | € | € | € | |
| Entities with significant influence over the Company | ||||
| 2015 | – | – | – | – |
| 2014 | – | – | – | – |
| Entities over which the company has control, joint control or significant influence | ||||
| 2015 | – | – | – | – |
| 2014 | – | – | – | – |
| Entities providing key management personnel services | ||||
| 2015 | – | – | – | – |
| 2014 | – | – | – | – |
Terms and conditions of transactions with related parties
Sales and purchases between related parties are made at normal market terms. Outstanding balances with entities are unsecured, interest free and cash settlement is expected within 30 days if invoice. A provision for bad debt has been created at the year-end for €10,000 (2014: €nil) against an amount due from an associate company.
Other related party transactions
AN Other, the director of the company, holds an interest in patents which are licensed to the company for the manufacture of certain machines. During the period, patent royalties of €XXXX (2014: €XXXX) were charged to the company in respect of the use of these patents. At 31 December 2015 an amount of €XXXX was due from the directors (2014: €XXXX amount due to the directors).
During the year the company was charged €XXX (2014: €XXX) by AN Other Limited for rental of the premises where the company operates. An amount of €XXX (2014: €XXX) was owed to AN Other Limited at the year end. AN Other Limited is related by virtue of common directors.
During the year the company paid expenses in the amount of €XXXX (2014: €XXXX) on behalf of an associate, Associate Limited. An amount of €XXXX (2014: €XXXX) remained outstanding from this company at the year end. A provision of €XXXXX (2014: €XXX) was provided against this balance at the 31 December 2015. Associate is related by virtue of common directors.
Key management personnel
All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. The total remuneration in respect of these individuals was €XXX (2014:€XXX).
Guarantees
The company has not provided or benefited from any guarantees for any related party receivables or payables.
| 13 Debtors – amounts falling due within one year | 2015 | 2014 |
| € | € | |
| Trade debtors | – | – |
| Prepayments and other debtors | – | – |
| Corporation tax | – | – |
| Value added tax | – | – |
| Amounts due from directors (see note 1) | – | – |
| Amounts due from related parties (see note XXX) | – | – |
| – | – |
Example 14: Extract from the directors remuneration disclosure
- DIRECTORS REMUNERATION AND TRANSACTIONS
| 2015 | 2014 | ||
| € | € | ||
| Remuneration | |||
| Salary | 182,000 | 185,600 | |
| Retirement Benefits | 30,000 | 30,000 | |
| 212,000 | 225,600 | ||
| Directors’ Loans | Directors A | Director B | |
| Opening Balance | 4,332 | 100,000 | |
| Repayments to directors | (9,301) | – | |
| Advances from directors | 1,000 | – | |
| Closing balance | 12,633 | 100,000 |
The interest rate applied to this loan was 5% per annum on a compound interest basis and is repayable on demand.
The maximum amount outstanding to directors during the year was €xx,xxx. There was no writes off on this loan during the year (2014: €nil). A provision of €nil (2014:€nil) was recognised against this balance at the year end.
| 14 Creditors – amounts falling due within one year | 2015 | 2014 |
| € | € | |
| Bank overdraft and loans | – | – |
| Trade creditors | – | – |
| Accruals | – | – |
| Income tax deducted under PAYE | – | – |
| Pay related social insurance | – | – |
| Amounts due to directors (see note XXX) | – | – |
| Amounts due to group undertakings (see note XXX) | – | – |
| Corporation tax | – | – |
| Value added tax | – | – |
Transition exemptions
Section 35 provides no transition exemptions on adoption of Section 33. This is unlikely to be an issue as Section 33 is very similar to old GAAP (FRS 8). The only differences between old GAAP and Section 33 are:
- Section 33.10 requires related party transactions to be disclosed separately for each of the below categories whereas old Irish GAAP allowed these to be aggregated:
- entities with control, joint control or significant influence;
- Entities over which the entity has control or significant influence;
- Key management personnel of the entity or its parent (in aggregate); and
- Other related parties.
- Section 33 requires the disclosure for pension contributions paid into a pension fund. There was no such requirement under old Irish GAAP (FRS 8) however it was required under FRS 17 so it would have been disclosed in any event.
- Section 33 requires disclosure of key management personnel compensation in total. This is in additional to the requirements of Company Law in relation to directors’ remuneration.
- The section also provides no exemption on the grounds of confidentiality. Under old Irish GAAP, disclosure was not required on the basis of confidentiality which was imposed by statute or company law.
- Section 33.11 provides an exemption from disclosure about related party transactions with a related party that is a state.
Principal transition adjustments
Section 33 is a disclosure standard so no transition adjustments will be required.
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