What Is a Related Party?

A party is either:

• A related party as defined in the applicable financial reporting framework; or

• Where the applicable financial reporting framework establishes minimal or no related party requirements:
• 
  
  • A person or other entity that has control or significant influence, directly or indirectly through one or more intermediaries, over the reporting entity;
  • Another entity over which the reporting entity has control or significant influence, directly or indirectly through one or more intermediaries; or
  • Another entity that is under common control with the reporting entity through having:
    • Common controlling ownership;
    • Owners who are close family members; or
    • Common key management.

However, entities that are under common control by a state (that is, a national, regional or local government) are not considered related unless they engage in significant transactions or share resources to a significant extent with one another.