Skip to main navigation

US GAAP versus IFRS - Related parties - EY - United States


Related parties

  • Share


The reporting objective of both ASC 850 and IAS 24 (both titled Related Party Disclosures) is to make financial statement users aware of the effect of related-party transactions on the financial statements. The definitions of a related party are broadly similar, and both standards require that the nature of the relationship, a description of the transaction and the amounts involved (including outstanding balances) be disclosed for related-party transactions.

Neither standard contains any measurement or recognition requirements for related-party transactions. ASC 850 does not require disclosure of compensation of key management personnel as IAS 24 does, but the financial statement disclosure requirements of IAS 24 are similar to those required by the SEC outside the financial statements.

Significant differences

ScopeASC 850 requires disclosure of all material related-party transactions, other than compensation arrangements, expense allowances and other similar items in the ordinary course of business.IAS 24 provides a partial exemption from the disclosure requirements for transactions between government-related entities as well as with the government itself.


No further convergence is planned at this time.

<< Previous

Back to top