26. Related Party Transactions

(a) Transactions with related parties excluding key management personnel

RTÉ is a statutory corporation, established as a public-service broadcasting corporation under the Broadcasting Authority Act, 1960. The members of the RTÉ Board are appointed by the Government. The Government is deemed to have control over the Group and is recognised as a related party as defined by the accounting standards. The Group has applied the exemption in IAS 24 Related Party Disclosures that exempts an entity from the related party disclosure requirements in respect of the Government and Government-related entities unless transactions are individually significant or collectively significant.

In the normal course of business, the Group has entered into transactions with the Government and Government-related entities involving the provision of advertising and other similar services, together with purchases of goods and services to/from Government departments and to entities controlled by the Irish Government. An Post collects the television licence fee on behalf of the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.

At 31 December 2020, the total payable to RTÉ subsidiary undertakings was €189.3 million (2019: €185.4 million).

(b) Transactions with key management personnel 1

For the purposes of the disclosure requirements of IAS 24 Related Party Disclosures, the term “key management personnel” (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the company) comprises the RTÉ Board, the Director-General, the RTÉ Executive and the corporate functions reporting directly to the Director-General. The total amount of compensation paid to key management personnel in 2020 was €3.4 million (2019: €4.0 million), comprising salaries and other short-term employee benefits of €2.6 million (2019: €3.0 million), post-employment pension benefits of €0.4 million (2019: €0.4 million) and termination benefits €0.4 million (2019: €0.6 million).

Purchases by RTÉ from a company owned/controlled by Board members, other key management personnel and/or their close family members in 2020 amounted to €1.4 million (2019: €1.3 million), primarily in respect of commissioned programmes. Sales by RTÉ to a company owned/controlled by Board members, other key management personnel and/or their close family members in 2020 amounted to €0.1 million (2019: nil). Outstanding contractual commitments from a company owned/controlled by Board members, other key management personnel and/or their close family members in 2020 amounted to €0.4 million (2019: €0.7 million). There were no material amounts outstanding at either year end.

Programme contributions paid by RTÉ to Board members, other key management personnel and their close family members in 2020 amounted to nil (2019: nil).

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made at terms equivalent to those that prevail in arm’s length transactions.

1 Related parties include key management personnel, their immediate families and external entities controlled by them.