What is the primary requirement for significant disclosures related to related party transactions under IFRS?

The primary requirement for significant disclosures related to related party transactions under IFRS is outlined in IAS 24. This standard specifically mandates disclosures that provide information about relationships between entities that could potentially influence the financial statements. The intent is to ensure that users of the financial statements understand the potential effects of these relationships on the financial position and performance of the entity.

Under IAS 24, companies must disclose the nature of the relationships, the transactions that have taken place, and the outstanding balances, all while considering the level of influence that these related party transactions have on the company’s financial health. The requirement emphasizes transparency around the transactions, whether they occur at arm's length or involve terms that may not be reflective of market conditions.

The inclusion of disclosures focused solely on cash transactions, or allowing minimal disclosures at the company's discretion, does not align with the comprehensive approach established by IAS 24. This standard is designed to promote accountability and provide a clearer picture of the company's financial dealings, thereby avoiding the ambiguity that might arise from relying on common sense judgment alone.