Exam 21: Related Party Disclosures

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

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

John Berry is one of the non-executive directors of Monash Company. In this current financial year, Monash Company had transactions with the following entities: I - Borrowed money from ABC Bank. II - Purchased raw materials from Deakin Company. III - Loaned money to one of its subsidiaries, Swinburne Company, with 10% per annum. IV - Sold products to Melbourne Company, of which John Berry is also a director. Which transactions are not related party transactions between Monash Company and another entity?

Examples of related party transactions that must be disclosed include:

David is the general manager of Awesome Limited and is considered to be the member of key management personnel. The following transactions occurred between David and Awesome Limited: David purchased a product of Awesome Limited on normal trading terms; David received remuneration from Awesome Limited amounting to $100 000; Awesome Limited issued 20 000 options to David, which can be converted into Awesome 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?

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 AASB 124 to transactions with the following parties, except for:

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

Aladdin is the owner and founder of Genie Limited. Aladdin's wife, Jasmine, has a controlling investment in Jafar Limited. Which of the following describes the relationship between Genie Limited and Jafar Limited?

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

Which of the following transactions are not related party transactions for an entity?

The scope of AASB 124 states that AASB 124 shall be applied in identifying the following, except for:

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

Metro Limited is a subsidiary of Matrix Limited. Which of the following is not a related party to Metro Limited?

Galaxy Limited is a listed company operating in retail industry with three business units: Milky Way, Andromeda, and Whirlpool. Which of the following is likely to be the key management personnel of Galaxy Limited?

Which of the following are most likely to be considered as key management personnel of an entity?

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

Two entities are not regarded as related parties simply because:

Drew is one of the directors of Mellor Limited. In the current financial year, Mellor Limited paid $50 000 to Advice Agency, where Drew's brother works, for the consultancy services it provided. In addition, Mellor Limited also paid $2000 to Drew for a once-off consultancy he provided on a specific project. Which of the following statements describes the relationship between Drew, Mellor Limited, and Advice Agency?

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

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?