Question 1

Disclosure of related parties is essential in financial reporting because:

Accepted Answer

A)  related parties cannot be trusted; 
B)  there are certain limits imposed on entities in regards to how many related party transactions they could have; 
C)  related parties have the potential to affect an entity's profit or loss and financial position that might not otherwise occur; 
D)  a high number of corporate collapses are caused by related party transactions. 
A)  related parties cannot be trusted; 
B)  there are certain limits imposed on entities in regards to how many related party transactions they could have; 
C)  related parties have the potential to affect an entity's profit or loss and financial position that might not otherwise occur; 
D)  a high number of corporate collapses are caused by related party transactions.

Question 2

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

Accepted Answer

A)  The domestic partner of a director of the reporting entity. 
B)  A supplier of the reporting entity. 
C)  The non-dependent children of the reporting entity's CEO. 
D)  Another subsidiary of the reporting entity's parent. 
A)  The domestic partner of a director of the reporting entity. 
B)  A supplier of the reporting entity. 
C)  The non-dependent children of the reporting entity's CEO. 
D)  Another subsidiary of the reporting entity's parent.

Question 3

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

Accepted Answer

A)  provision of doubtful debts related to outstanding balances; 
B)  the amount of transactions; 
C)  the amount of the outstanding balances and commitments; 
D)  the key management personnel of the related party. 
A)  provision of doubtful debts related to outstanding balances; 
B)  the amount of transactions; 
C)  the amount of the outstanding balances and commitments; 
D)  the key management personnel of the related party.

Question 4

Which of the followings are most likely to be considered as key management personnel of an entity?
$\begin{array}{|l|l|l|l|}
\hline \text { I. } & \text { Chief Financial Officer } & \text { III. } & \text { Non-executive directors } \
\hline \text { II. } & \text { Admin Officer } & \text { IV. } & \text { General manager } \
\hline
\end{array}$

Accepted Answer

A)  I, II, and III; 
B)  II, III, and IV; 
C)  I, III, and IV; 
D)  I, II, III, and IV. 
A)  I, II, and III; 
B)  II, III, and IV; 
C)  I, III, and IV; 
D)  I, II, III, and IV.

Question 5

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

Accepted Answer

A)  significant influence exists; 
B)  control exists; 
C)  economic dependence exists; 
D)  all of the above. 
A)  significant influence exists; 
B)  control exists; 
C)  economic dependence exists; 
D)  all of the above.

Question 6

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

Accepted Answer

A)  VicEd Limited only; 
B)  Science Limited only; 
C)  Science Limited and Chem Limited only; 
D)  VicEd Limited, Science Limited, and Chem Limited. 
A)  VicEd Limited only; 
B)  Science Limited only; 
C)  Science Limited and Chem Limited only; 
D)  VicEd Limited, Science Limited, and Chem Limited.

Question 7

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

Accepted Answer

A)  control; 
B)  significant influence; 
C)  share ownership; 
D)  joint control. 
A)  control; 
B)  significant influence; 
C)  share ownership; 
D)  joint control.

Question 8

Harry is a non-executive director of Potter Limited and Hogwarts Limited. Harry's wife, Ginny, is a non-executive director of Weasley Limited. Which of the following statements is correct?

Accepted Answer

A)  Harry is not a related party to Potter Limited. 
B)  Potter Limited and Hogwarts Limited are not related parties. 
C)  Ginny is a related party to Hogwarts Limited. 
D)  Potter Limited and Weasley Limited are related parties. 
A)  Harry is not a related party to Potter Limited. 
B)  Potter Limited and Hogwarts Limited are not related parties. 
C)  Ginny is a related party to Hogwarts Limited. 
D)  Potter Limited and Weasley Limited are related parties.

Question 9

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

Accepted Answer

A)  a joint venture; 
B)  a related party; 
C)  a subsidiary; 
D)  an associate. 
A)  a joint venture; 
B)  a related party; 
C)  a subsidiary; 
D)  an associate.

Question 10

An entity is related to a reporting entity if any of the following conditions apply, except:

Accepted Answer

A)  the reporting entity has significant economic dependence on the entity; 
B)  both entities are joint venture of the same third party; 
C)  the entity is the subsidiary of the reporting entity; 
D)  the entity is a post-employment benefit plan for the reporting entity's employees. 
A)  the reporting entity has significant economic dependence on the entity; 
B)  both entities are joint venture of the same third party; 
C)  the entity is the subsidiary of the reporting entity; 
D)  the entity is a post-employment benefit plan for the reporting entity's employees.

Disclosure of related parties is essential in financial reporting because:

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

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

Which of the followings 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

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

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

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

Harry is a non-executive director of Potter Limited and Hogwarts Limited. Harry's wife, Ginny, is a non-executive director of Weasley Limited. Which of the following statements is correct?

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

An entity is related to a reporting entity if any of the following conditions apply, except:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters

Exam 23: Operating Segments

Disclosure of related parties is essential in financial reporting because:

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

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

Which of the followings 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

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

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

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

Harry is a non-executive director of Potter Limited and Hogwarts Limited. Harry's wife, Ginny, is a non-executive director of Weasley Limited. Which of the following statements is correct?

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

An entity is related to a reporting entity if any of the following conditions apply, except:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters