IAS 24: RELATED PARTY DISCLOSURES ( QUIZ 001 )

 




1. Name of IAS 24 is

• Related party disclosure
• Related party transactions
• Related party information
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2. IAS 24 is a

• Reclassification standard
• Disclosure standard
• Redrafting standard
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3. As per IAS 24 disclosure is required in financial statements of a company if there is possibility that entity’s profit or loss or statement of financial position may have been affected by

• The existence of related parties only
• Transactions and outstanding balances with related parties only
• Both the existence of related parties and transactions and outstanding balances with related parties
 only
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4. XYZ company preparing its annual financial statements, as per IAS 24 which one is related party to the XYZ company

• Person has control or joint control with significant influence over XYZ Company.
• Is a member of the key management personnel of the XYZ Company or of a parent of the XYZ
 Company
• Both above are related parties to XYZ Co.
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5. In considering related party relationship to a reporting entity “Substance over form” concept should not be applied only legal form of the relationship is considered.

• True
• False
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6. Which of the following can likely be exempted from the existence of related party relationship?

• Trade unions
• Public utilities
• Government departments and agencies
• Two ventures that simply share joint control over a joint venture
• Providers of finance (such as a lending bank or a bondholder)
• Customers, suppliers, franchisors, distributors or other agents with whom the entity transacts a significant volume of business.
• All of the above.
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7. Related party transaction can be defined as,

• Transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
• Transfer of resources, services or obligations between a reporting entity and a related party where price is charged.
• Transfer of resources, services or obligations between a reporting entity and a related party where price charged is material.
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8. A personal loan taken by chief executive of a company financed by the same company

• Is a related party transaction and to be disclosed in financial statements
• Is a related party transaction need not to be disclosed in financial statements
• Is not a related party transaction
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9. Which one from below is not required to be disclosed in notes to financial statements regarding related parties whether or not transaction have taken place

• Name of entity’s parent
• Name of ultimate controlling party
• Date when related party relationship built
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10. Which one from below is required to be disclosed in financial statements regarding compensation to key management personnel

• Short-term employee benefits
• Post-employment benefits
• Other long-term benefits
• Termination benefits
• Share-based payments.
• All above are required to be disclosed.
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