What is the significance of the related party transaction exemption in paragraph 1500.25?
The general approach is retrospective adoption of the standards. Paragraph 1500.25 allows an enterprise to avoid restatement of past related party transactions in accordance with Section 3840, Related Party Transactions. The AcSB noted that it could potentially be quite difficult, and accordingly costly, to apply Section 3840 retrospectively, particularly to transactions that may have taken place many years ago. However, subsequent to the date of transition Section 3840 must be complied with.
