GRAP 109 on Accounting by Principals and Agents provides guidance on accounting for principal-agent arrangements. When the entity concludes that an arrangement meets the definition of a principal-agent arrangement, it applies criteria to assess whether it is the agent.

A new Frequently Asked Question (FAQ) was developed to explain how these criteria are assessed. Access the FAQ here [Frequently asked questions – ASB].

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.