IAS 24 reflects the view that transactions carried out by related parties cannot be presumed to be at arm's length.

Question

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IAS 24 requires entities to disclose related party transactions and states that such transactions cannot be presumed to be at arm's length. This means that entities need to provide additional information about related party transactions to ensure that they are fair and reflective of the economic substance of the transaction.

IAS 24 Reflects the View That Transactions Carried Out by Related