For the purpose of IAS 24, close members of the family of an individual are defined as "those that may be expected to influence, or be influenced by, that person in their dealings with the enterprise."
An enterprise is considered to have the ability to control another enterprise if either of the two conditions is met: (1) it owns, directly or indirectly, through subsidiaries, more than one-half of the voting power of the other enterprise; or (2) it owns a substantial interest in the voting power along with the power to direct, by statute or agreement, the financial and operating policies of the management of that other enterprise.
For the purpose of IAS 24, key management personnel are defined as ''those persons having authority and responsibility for planning, directing, and controlling the activities of the reporting enterprise, including directors and officers of companies and close members of the families of such individuals."
Entities are considered to be related parties when one of them either has the ability to control the other, or can exercise significant influence over the other in making financial and operating decisions.
Related-party transactions are dealings between related parties involving transfer of resources or obligations between them, regardless of whether a price is charged for the transactions.
For the purposes of this standard, an enterprise is considered to possess the ability to exercise significant influence over another enterprise if it participates in, as opposed to controls, the financial and operating policy decisions of that other enterprise.