Persons who control an entity and are a member of the key management personnel of another entity

Mrs X has a 100% investment in Entity A and is a member of the key management personnel of Entity S. Entity M has a 100% investment in Entity S.

For Entity S”s financial statements, Entity A is related to Entity S because Mrs X controls Entity A and is a member of the key management personnel of Entity S.

For Entity S”s financial statements, Entity A is also related to Entity S if Mrs X is a member of the key management personnel of Entity M and not of Entity S.

This outcome would be the same if Mrs X has joint control over Entity A (if Mrs X only had significant influence over Entity A and not control or joint control then Entities A and S would not be related parties).

For Entity A”s financial statements, Entity S is related to Entity A because Mrs X controls A and is a member of Entity S”s key management personnel. This outcome would be the same if Mrs X has joint control over Entity A and will also be the same if Mrs X is a member of the key management personnel of Entity M and not Entity S (see 2.2.8 below).

For Entity M”s consolidated financial statements, Entity A is a related party of the Group if Mrs X is a member of the key management personnel of the Group. If Mrs X is only a member of the key management personnel of Entity S and not the Group then Entity A is not a related party in the separate or consolidated financial statements of Entity M.