The impact of IAS 24 on entities’ Financial Reporting: A structured literature review

This study examines the impact of IAS 24, Related Party Disclosures, on the transparency and quality of financial reporting in entities. The research highlights the critical role of IAS 24 in fostering accountability and reducing information asymmetry by mandating the disclosure of transactions and relationships with related parties. Through a structured literature review spanning academic journals, regulatory guidelines, and industry reports, the study identifies significant variations in compliance and implementation across jurisdictions and industries. Findings suggest that while higher compliance with IAS 24 enhances stakeholder confidence and market trust, challenges persist due to inconsistent enforcement, cultural norms, and governance structures. The research underscores the importance of robust audit practices and governance mechanisms in ensuring effective compliance. Practical recommendations are proposed to bridge gaps in global financial reporting practices, aiming to align entities with the standard’s objectives of transparency, ethical governance, and stakeholder protection.