At its meeting on June 21, 2016, the Committee members discussed the need for a project on how to account for combinations between NFPOs and a project on the measurement of, and other matters pertaining to, related party transactions.  Committee members also discussed common related party transactions and some of the related party transaction issues being encountered in practice.  For example, common related party transactions include contributions to and from directors and other organizations, and purchases and sales of goods and services between the NFPO and its board members or family members of the board.  Some of the issues cited included the difficulty in determining “control” and “significant influence”, and the absence of measurement guidance for related party transactions which creates diversity in practice.  Committee members also noted that it would be helpful to consider disclosure objectives for related party transactions rather than a list of specific disclosures.  The Committee agreed to request that the AcSB initiate projects on combinations between NFPOs, and related party transactions before the approved Controlled and Related Entities project.

Review the summary of discussions on the AcSB's Web site.