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Audit and related party disclosures

Our auditor asks for related party details. Why?

The situation

IFRS needs related party disclosures, and TP rules need a declaration above QAR 10 million.

The law

  • GTA President's Decision No. 4 of 2020 (transfer pricing documentation): TP declaration if revenue or assets are QAR 10 million or more; Master File and Local File if QAR 50 million or more and a related party abroad
  • Executive Regulations of Law No. 24 of 2018 (audited financial statements): Audited IFRS accounts must go with the return if capital exceeds QAR 200,000, income exceeds QAR 500,000 or the head office is abroad; accounts in Arabic from 2020

What it means for you

IFRS needs related party disclosures, and the TP declaration needs related party values when revenue or assets reach QAR 10 million. Building one list serves both and keeps the figures consistent. Inconsistent figures invite questions in a GTA review.

What to do

  1. Prepare related party list.
  2. Give to auditor.
  3. Use for TP declaration.
  4. Reconcile.

We can do this for youStatutory audit and IFRS financial statements in Arabic for the tax return: QAR 7,500

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