Regulations of Vietnamese Accounting Standards No. 26 “Information about Related Parties”

IN THIS STANDARD THE FOLLOWING SITUATIONS ARE REGARDED PARTYS:
 

(a) Enterprises that control, or are controlled directly or indirectly, through one or more intermediaries, or are under common control with the reporting entity (including parent, subsidiary, subsidiaries of the same group);

(b) Associates (as defined in Accounting Standard No. 07 “Accounting for investments in associates”);

(c) Individuals with direct or indirect voting rights in reporting enterprises that exert significant influence over the enterprises, including close members of the families of these individuals. Close members of an individual's family are those who can govern or be influenced by that person when dealing with an enterprise such as the relationship: Father, mother, wife, husband, children, brothers, sisters ;

(d) Key management personnel with authority and responsibility for the planning, management and control of the activities of the reporting enterprise, including leaders and management personnel of the company. and close family members of these individuals;

(d) Enterprises in which the individuals referred to in paragraphs (c) or (d) hold, directly or indirectly, a substantial part of the voting rights or through which they can exercise significant influence over the enterprise. . This includes businesses that are owned by the leaders or major shareholders of the reporting enterprise and those that share a key member of management with the reporting enterprise.

In considering each related party relationship, attention should be paid to the nature of the relationship, not just its legal form.

THE FOLLOWING SITUATIONS ARE NOT CONFIDENTIAL PARTYS:

(a) Two companies have the same Director, excluding cases 3(d) and 3(e) mentioned above (but the exception should also be considered through assessing the possibility that such Director can influence the policies of both companies in joint transactions);

(b) Organizations and individuals that have normal relations with the enterprise:

- Organizations and individuals providing finance;

- Political organizations, mass organizations and society;

- Public service units;

- State management agencies.

(c) Customers, suppliers, distributors, or agents in general with whom the enterprise conducts a large volume of transactions despite economic dependence.

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