Joint submission to the ACNC on Related Party Transactions
Feedback on an option to disclose related party transactions in the 2023 Annual Information Statement
In response to the ACNC legislative review recommendation to require charities to report some level of related party information, the ACNC is consulting on proposed changes to the Annual Information Statement (AIS).
The consultation provides the following three options:
- Providing three key components
- Pre-defined list of categories
- Pre-defined categories and dollar values
In a joint submission, CA ANZ and CPA Australia support option 3. By providing a list of the most common types of related party transactions, preparers will have a consistent, and comparable basis to report this information. Along with the dollar value information, the significance of the different classes of transactions is also identified.
In addition, we recommend several enhancements to option 3, such as getting charities to positively assert if there are no related party transactions.
