Exam 15: Other Key Notes Disclosures

The scope of IAS 24 states that IAS 24 shall be applied in identifying the followings, except for:

The basic earnings per share and diluted earnings per share ratios must be presented in an entity's:

The following remuneration categories must be disclosed for key management personnel, except for:

Any errors or adjustments resulting from changes in accounting policies that are accounted for retrospectively require:

Which of the following is the related party of a reporting entity within the scope of IAS 24?

A government entity controls both Edward Limited and Jacob Limited. Bella Limited and Jasper Limited are the subsidiaries of Edward Limited. Carlisle Cullen is the managing director of Edward Limited. Edward Limited can apply the partial exemption of disclosures in paragraph 25 of IAS 24 to transactions with the following parties, except for:

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) The entity made an agreement with a trade union about increase in employee's wages. III) A subsidiary of the entity supplied raw materials to the entity. IV) The entity lent money to one of its directors.

Examples of related party transactions that must be disclosed include:

Under paragraph 4, if an entity presents both consolidated and separate financial statements, the IAS 33 disclosures need only be determined on the basis of:

Use the following information to answer questions Harry Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30 June 2016 as €960 000. The average market price of the entity's shares during the period is €4.00 per share. The weighted average number of ordinary shares on issue during the period is 1 000 000. The weighted average number of shares under share options arrangements during the year is 200 000 and the exercise price of shares under option is €3.50. -The diluted earnings per share at 30 June 2016 is:

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

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

IAS 24:

ABC Ltd has 21 000 ordinary shares on issue at 1 January 2016 which is the beginning of its reporting period. On 30 June 2016, it issued a further 2000 ordinary shares for cash. On 1 November 2016, ABC Ltd repurchased 600 shares at fair value in a market transaction. The weighted average number of shares for use in the earnings per share calculation is:

For the purposes of calculating diluted earnings per share, an entity shall adjust the profit attributable to ordinary shareholders by the after-tax effect of the following item(s) related to dilutive potential ordinary shares:

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

Disclosure of related parties is essential in financial reporting because:

Earnings per share is calculated by:

If an entity chooses to apply the disclosure exemption in paragraph 25 of IAS 24, it is still required to do the followings, except:

Earnings per share disclosed by reporting entities have limitations because of the: I different accounting methods that can be used in the determination of profit II different amounts of profit depending on the size of the entity III ability of an entity to change the number of shares used in the denominator IV different numbers of shareholders depending on the size of the entity