A close family member of someone who is key management personnel is considered to be a related party.

Question

Quizplus · Accepted Answer

According to the definition provided by the International Financial Reporting Standards (IFRS), a close family member of someone who is key management personnel is considered to be a related party. This is because there is a potential conflict of interest in the transactions and relationships between the company and its key management personnel or their close family members. Disclosures of such related party transactions are required in the financial statements to ensure transparency and fairness in the reporting of the company's financial performance.

A Close Family Member of Someone Who Is Key Management