Who is considered a related party according to IAS 24?

A member of key management personnel of the reporting entity is considered a related party according to IAS 24. Key management personnel typically include individuals who have the authority and responsibility for planning, directing, and controlling the activities of the entity, either directly or indirectly. This definition encompasses not just members of the board of directors but also individuals in senior management positions.

The significance of identifying key management personnel as related parties lies in the potential for conflicts of interest and influence over financial and operating policies, which requires transparency in financial reporting. IAS 24 mandates that related party transactions be disclosed to provide users of financial statements with a clearer understanding of their potential impacts on the entity's financial position and performance.

In contrast, others listed in the options do not meet the criteria established by IAS 24. Suppliers and customers, for example, do not typically exert similar control or influence over the reporting entity as key management personnel do. Furthermore, a person with no control over the entity would not be classified as a related party since the essence of a related party relationship lies in the ability to influence policies and decisions, which is absent in such cases.