Related Party Transactions Quiz
8 multiple-choice questions with answers and explanations · 3 easy, 3 medium, 2 hard
Who counts as a related party, which relationships and transactions must be disclosed, and key management personnel compensation.
- 1IAS 24 - Nature of the standardA company sells inventory to a business owned by its finance director for well below market price. Under IAS 24, the company must:easy
- 2IAS 24 - Parent relationship with no transactionsA subsidiary had no transactions whatsoever with its parent during the year. In its own financial statements the subsidiary must:easy
- 3IAS 24 - Transactions with no price chargedA parent provides management services to its subsidiary and charges nothing for them. For the subsidiary, this is:easy
- 4IAS 24 - Common directorshipTwo companies share one non-executive director. Neither company controls, jointly controls or has significant influence over the other. The companies are:medium
- 5IAS 24 - Economic dependenceA manufacturer sells 70% of its output to a single customer, and losing that customer would threaten its survival. Under IAS 24 the customer is:medium
- 6IAS 24 - Key management personnel compensationDisclosure of key management personnel compensation under IAS 24 requires:medium
- 7IAS 24 - Identifying a related party entityWhich of the following is NOT a related party of the reporting entity under IAS 24?hard
- 8IAS 24 - Government-related entity exemptionA state-owned entity transacts with many other entities controlled by the same government. IAS 24 allows it to:hard