PAS 24 Flashcards
According to PAS 24, related party disclosures are necessary
A. Because related party transactions may have resulted to assets and
liabilities that were recognized in the financial statements of the reporting entity.
B. To notify users of financial statements of the fact that related party
transactions may not have been made on arm’s length basis.
C. To indicate the possibility that an entity’s financial position and
performance might have been affected by the existence of such
relationships.
D. In order to eliminate or minimize the effects of related party transactions on the financial statements of the reporting entity.
c
Which is overriding consideration when determining the existence of a related party relationship?
A. The ability of one party to affect the decisions of another party regarding relevant activities through the existence of control, joint control or significant influence.
B. The presence of relationship either by consanguinity or affinity.
C. The presence of a significant interest by one party over the other.
D. The presence of significant business transactions and economic dependence between the parties.
a
Mr. Y and Ms. Z share joint control over Ventures, Inc. Which of the following are related parties?
A. Mr. Y and Ms. Z
B. Ventures Inc. and Mr. Y
C. Ventures Inc. and PAS 24
D. None of these
b
Entity A is the parent company of Entity B. Which of the following is
required to be disclosed in the group’s (Entity A and B’s) consolidated
financial statements?
A. The related party relationship between Entity A and Entity B
B. The related party transactions during the period
C. The outstanding balances in (b)
D. All of these
a
