Exam 21: Related Party Disclosures

Which of the following are most likely to be considered as key management personnel of an entity? I. Chief Financial Officer III. Non-executive directors II. Admin Officer IV. General manager

Jack is a non-executive director of Shanghi Limited and Jiang Limited. Jack's wife, Sarah, is a non-executive director of Huang Limited. Which of the following statements is correct?

The contractually agreed sharing of control over an economic entity is known as:

Flower Limited is a listed company operating in the retail industry with three business units: Aster, Rose, and Jasmine. Which of the following is likely to be the key management personnel of Flower Limited?

Walton Co is a government agency that controls Science Limited. Science Limited has two subsidiaries: Physics Limited and Biology Limited. To which entities can Physics Limited apply the disclosure exemption in paragraph 25 of AASB 124?

Chris holds an investment in Lee Limited that gives him a significant influence over the company. Chris's daughter, Chloe, also has a significant influence over another entity, Chang Limited. What is the relationship between Lee Limited and Chang Limited?

An entity in which an investor has significant influence is known as a/an:

The minimum disclosures for related party transactions include the following, except:

Two entities are not regarded as related parties simply because:

Which of the following is the related party of a reporting entity within the scope of AASB 124?

Barry Allen is one of the non-executive directors of Rose Company. In this current financial year, Rose Company had transactions with the following entities: I. Borrowed money from City Bank. II. Purchased raw materials from Arrow Company. III. Loaned money to one of its subsidiaries, Firestorm Company, with 10% per annum. IV. Sold products to Star Labs Company, of which Barry Allen is also a director. Which transactions are not related party transactions between Rose Company and another entity?

A government entity controls both James Limited and Claire Limited. Collum Limited and Dougall Limited are the subsidiaries of James Limited. Frank Randall is the managing director of James Limited. James Limited can apply the partial exemption disclosures in paragraph 25 of AASB 124 to transactions with the following parties, except for:

According to AASB 124, related party disclosures are required irrespective of whether there have been related party transactions when:

If an entity chooses to apply the disclosure exemption in paragraph 25 of AASB 124, it is still required to do the following, except:

Amanda is one of the directors in Lions Limited, which is one of the subsidiaries of Harrisville Limited. She also has a joint control with Barry in Zephyr Limited. In this circumstance, the following are related parties to Lions Limited, except for:

Larry is the owner and founder of Manchester Limited. Larry's wife, Katie, has a controlling investment in Hudson Limited. Which of the following describes the relationship between Manchester Limited and Hudson Limited?

In the case where financial statements of parent entity or the ultimate controlling entity are not made publicly available, the reporting entity must disclose:

Which of the following transactions are not related party transactions for an entity? I. An employee purchased the entity's products on normal trading terms. II. A subsidiary of the entity supplied raw materials to the entity. III. The entity lent money to one of its directors. IV. The entity made an agreement with a trade union about increase in employee's wages.

The power to participate in the financial and operating policy decisions of an entity is known as:

Kelly is the general manager of Ned Limited and is considered to be the member of key management personnel. The following transactions occurred between Kelly and Ned Limited: Kelly purchased a product of Ned Limited on normal trading terms; Kelly received remuneration from Ned Limited amounting to $400 000; Ned Limited issued 80 000 options to Kelly, which can be converted into Ned Limited's shares if target profit margin of 25% is achieved in the next three years. Which of the above transactions must be disclosed as related party transactions?