25 Related party disclosuresThe financial statements include the financial information of EYNL and the subsidiaries listed in the following table.
|% Equity interest|
|30 June 2016||30 June 2015|
|Ernst & Young Accountants LLP||United Kingdom||100%||100%|
|Ernst & Young Belastingadviseurs LLP||United Kingdom||100%||100%|
|Ernst & Young Participaties Coöperatief U.A.||The Netherlands||100%||100%|
|Ernst & Young Participaties B.V.||The Netherlands||100%||100%|
|Ernst & Young VAT Rep B.V.||The Netherlands||100%||100%|
|Ernst & Young Actuarissen B.V.||The Netherlands||100%||100%|
|Ernst & Young CertifyPoint B.V.||The Netherlands||100%||100%|
|GS Participation Ltd||United Kingdom||100%||100%|
|Ernst & Young Real Estate Advisory Services B.V.||The Netherlands||100%||100%|
|BECO Groep B.V.||The Netherlands||-||100%|
|Parthenon-EY B.V.||The Netherlands||100%||100%|
|Centre B.V.||The Netherlands||100%||100%|
|Integrc Netherlands B.V.||The Netherlands||100%||-|
|EY Intelligence in Information B.V.||The Netherlands||100%||-|
|EY Montesquieu Finance B.V.||The Netherlands||100%||-|
|EY Montesquieu Institutional Risk Management B.V.||The Netherlands||100%||-|
During 2015/2016 the following entities were acquired by Ernst & Young Participaties B.V.:
- 100% of the shares of Integrc Netherlands B.V. - 3 August 2015
- 100% of the shares of Intelligence in Information B.V. – 1 March 2016, after acquisition the name has been changed to EY Intelligence in Information B.V.
- 100% of the shares of Montesquieu Finance B.V. and Montesquieu Institutional Risk Management B.V. – 2 May 2016, after acquisition the names have been changed to EY Montesquieu Finance B.V. and EY Montesquieu Institutional Risk Management B.V.
BECO Groep B.V. was liquidated during 2015/2016. The liquidation was finalised on 12 April 2016.
In June 2016 the name Ernst & Young CA B.V. was changed in Parthenon-EY B.V.
On 3 November 2014 Ernst & Young Participaties B.V. acquired 100% of the shares of Centre B.V.
EYB has a strategic alliance with HVG.
Transactions and balances
Under IFRS 10, an investor controls an investee when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Board of EY Europe has continued to review the arrangements between EY Europe and EYNL as required by IFRS 10, and now consider that EY Europe’s own exposure to variable returns from EYNL arising from those arrangements is not sufficient to meet the definition of control, despite having power over EYNL. The arrangements do give EY Europe significant influence over EYNL, so EYNL is therefore an associate of EY Europe.
Entities under common control in 2014/2015 comprise entities controlled by EYNL’s then parent undertaking, EY Europe, and therefore represented related party relationships.
EY Europe is also able to exert significant influence over the EYGS group and the EYGI group meaning that in 2014/2015 they were associates of EYNL. Transactions and balances at the 2014/2015 year end with these related parties are stated below. As a member of the EY global network, EYNL has committed to provide services to and receive services from EYGS.
The following table provides the total amounts for which transactions were entered into during the relevant financial years and the outstanding balances at 30 June 2016 and 30 June 2015.
|Entity with control and/or significant influence over EYNL:|
|Entities under common control||2015/2016||-||-||-||-|
|Entities under significant influence by EY Europe:|
* Gross amounts
At the period end, loans of €98.9 million were provided by EYGF, these loans are not included in the above table. These loans are interest-free (see Note 17 and Note 26).
Terms and conditions of transactions with related parties
Services provided to and received from related parties are generally settled at prices applicable under normal market circumstances. Outstanding balances at year-end are unsecured and interest-free, and settlement occurs in cash. No guarantees were provided or received for any related-party receivable or payable. For the year ended 30 June 2016 EYNL did not record any impairment of related-party receivables (30 June 2015: nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which it operates.
Compensation of key management personnel of EYNL
Key management personnel are the designated members of EYNL, EYA and EYB and the members of the Supervisory Board of EYNL during the financial year. The designated members do receive their remuneration through their professional corporations, being a total of €3.2 million (2014/2015: €3.2 million).
From 1 July 2015, EYNL has a Supervisory Board. The remuneration of the Supervisory Board members for 2015/2016 is a total amount of €0.2 million.