Consequences of Poor ethics

Question 1

What is the obvious consequences for unethical members?

Answer 1

Professional disciplinary proceedings

Question 2

What will the result be for Professional disciplinary proceeding?

Answer 2

1) Fine
2) No longer be a director
3) Expelled from your professional body

Question 3

What is a social responsibility?

Answer 3

Looking after society and environmental costs which will bring an increase in sales

Question 4

Companies who have social responsibilities - What are they known as?

Answer 4

Corporate Citizens

Question 5

What happens if you do not take CSR seriously?

Answer 5

Lose in investment and sales

Question 6

Person who controls 30% of the reporting entity?

Related party or not

Answer 6

Yes related party, this is not a group.

Question 7

What does significant influence mean?

If a close member had significant influence on reporting entity, is he a related party?

Answer 7

Significant influence is the power to participate in financial/operating policy but not control.

Yes Related party

Question 8

What do key member of management have?

What is their function?

Are they a related party

Answer 8

They have authority and responsibility

To direct control and plan activities

They are a related party

Question 9

If the person is a key member of management in Company A and Company B owns 80% of Company A.

Would the CEO if Company B be a related party?

Answer 9

Yes, CEO will be a related party because Company B has control over Company A

Question 10

If Entity A has 80% control over Entity B and Entity B has 70% control over Entity C.

Is Entity A and Entity C related party?

Answer 10

Yes Entity A and Entity C are related party

Question 11

If Entity A owns 80% of Entity B and 30% of Entity C?

Are all entities a related party?

Answer 11

Yes all are related parties.

Question 12

If Entity A and entity B share and control Entity D( Joint Venture) and Entity A and Entity C share and control entity E ( Joint Venture).

Is Entity D and Entity E related parties?

Answer 12

Yes Entity D and E are related because they are both joint venture of the same entity ( Entity A)

Question 13

If entity A and Entity share and control Entity D and Entity owns 40% of Entity E.

Is Entity D and Entity E related parties?

Answer 13

Yes Entity D and Entity E is related. Although Entity E is an associate however Entity D is a Joint venture of the same entity ( Entity A) which makes enough for both entities to be related.

Question 14

If entity A is putting money into Pension Fund A, are they related?

Answer 14

Yes they are related

Question 15

If entity A is putting money into Pension Fund A. Entity A owns 80% of Entity B and Entity B puts money into Pension Fund B. Is Entity B and Pension Fund A related?

Answer 15

Yes they are related.

Question 16

Mr A owns Entity A by 90% and Mrs B owns 30% of Entity B.

State which parties are related

Answer 16

All Parties.

Mr A controls entity A however Mr A can be significantly influenced by Mrs A who owns 30% of Entity B - Associate ( Vice versa).

Question 17

If entity A provides CFO Services or provide key management personnel to Entity B who owns 90% of Entity C.

Is Entity A and Entity C related parties?

Answer 17

Yes they are related

Question 18

If entity A has 30% control over Entity B and Entity A has 40% control over Entity C.

Is Entity C and Entity B related parties?

Answer 18

No they are not.

Common associates between two entities are not related parties. One of them has to be Joint Venture.

Question 19

If the person is a key member of management for Entity A and entity B.

Is entity A and entity B related parties?

Answer 19

No, they are not related.

Although decisions are made by the same person, both entities do not affect each other.

Question 20

If entity A and B share and control the Entity C. Is Entity A and Entity B related parties?

Answer 20

No they are not related parties.

Question 21

Is Public utilities and trade unions a related parties?

Answer 21

No they are not related parties

Question 22

Is a customer or supplier a related party?

Answer 22

No they are not related parties

Question 23

Is an agent or distributor a related party?

Answer 23

No they are not related parties

Question 24

Is Government department or provide finance a related party?

Answer 24

No they are not related parties

Question 25

Related parties are those who?

Answer 25

Control, Joint control, Significant influence and is a key management

Question 26

If Government department do control companies, are they are a related party?

Answer 26

Yes they are a related party

Question 27

What do you need to disclose for related parties?

Answer 27

1) Group Relationships, Key Management Personnel and Transactions.

Question 28

Are there any exemptions for disclosures for the Government? If yes, state what they are

Answer 28

Yes there are. They are exempt disclosing transactions, balances and commitment.

However they should disclose relationship parties and individual significant transactions