16. Other disclosures

Question 1

Define related parties

Answer 1

An entity that is related to the entity that is preparing its financial statements

Question 2

When can a person be considered related to the reporting entity

Answer 2

• If the person/ family memeber has:
• Has control or joint control over reporting entity
• Has significant influence over the reporting entity
• Is a member of the key management personnel of the reporting entity

Question 3

Define key management personnel

Answer 3

Those persons having authority and responsibility for planning directing and controlling the activities of the entity directly or indirectly including directors of the entity

Question 4

What are not related parties

Answer 4

• Two entities simply because they have a director in common
• Two joint venturers because they share joint control over a venture
• Certain