Finance > Related Party Transactions Procedure
Authorised by Chief Executive Officer
Issue Date: 21 September 2023
This procedure references the Australian Accounting Standards Board (AASB) in AASB 124 Related Party Disclosures.
The term 'related party' is defined by the Australian Accounting Standards Board and refers to the following as related parties for a registered charity:
• a person that is connected to the charity, such as a Responsible Person or a close member of their family that has control or joint control of the charity
• an organisation that is connected to the charity and has control or significant influence over the charity, such as a parent entity of the charity
• an organisation that the charity has control or significant influence over, such as a subsidiary entity
• any organisation and the charity that are members of the same group (for example, fellow subsidiaries)
• a member, or a close member of their family, of the key management personnel of the charity (the people with authority and responsibility for planning, directing and controlling the activities of the charity directly or indirectly)
• an associate (an entity over which the charity has significant influence) or joint venture (a joint arrangement whereby the charity with another entity or other entities have joint control of the arrangements and have rights to the net assets of the arrangement)
A related party transaction is defined in AASB 124 as a transfer of resources, services or obligations between a charity and a related party regardless of whether a price is charged. Conflicts of interest (whether actual or perceived) may arise where a related party has an interest that may conflict with the best interests of the charity.
Charities must carefully manage any related party transactions to ensure they are handled:
• appropriately,
• transparently, and
• in the best interests of the charity.
Related party transactions can include:
• receipt of goods, services or property
• leases
• purchases, sales, donations
• provision of employees on a paid or complementary basis
For more information, see AASB 124 Related Party Disclosures.
Kyeema’s management of related party transactions is as follows:
• Related party transactions party must be authorised by Kyeema’s Finance Audit Risk Committee and monitored for fairness and probity.
• Related party transactions must be disclosed to the financial auditors using Related Party Transactions Letter FF-06
Record Keeping
Related Party Transactions Register: K:\Admin\Finance\Related Party Transactions
Related Policies, Procedures and Documents:
Related Party Transactions Register FF-04
Related Party Transactions Letter FF-06