Question 1

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 2

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

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

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

Accepted Answer

A)  the name of the entity's largest shareholder; 
B)  the name of the next most senior parent entity whose financial statements are publicly available; 
C)  the reason of why the parent entity does not make its financial statements publicly available; 
D)  the level of share ownership of the next most senior parent entity. 
A)  the name of the entity's largest shareholder; 
B)  the name of the next most senior parent entity whose financial statements are publicly available; 
C)  the reason of why the parent entity does not make its financial statements publicly available; 
D)  the level of share ownership of the next most senior parent entity.

Question 4

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

Accepted Answer

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

Question 5

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.

Question 6

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 7

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 8

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

Accepted Answer

A)  A pension scheme that offers benefits to employees of Metro Limited. 
B)  The Managing Director of Matrix Limited. 
C)  An associate of Metro Limited. 
D)  A distributor of Metro Limited's products. 
A)  A pension scheme that offers benefits to employees of Metro Limited. 
B)  The Managing Director of Matrix Limited. 
C)  An associate of Metro Limited. 
D)  A distributor of Metro Limited's products.

Question 9

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 IAS 24?

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.

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

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

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

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

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

Disclosure of related parties is essential in financial reporting because:

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

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

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 IAS 24?

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters

Exam 22: Operating Segments

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

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

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

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

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

Disclosure of related parties is essential in financial reporting because:

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

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

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 IAS 24?

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters