CAF-8 · Chapter 11 · Question 6 of 10
What is the primary disclosure requirement for Related Party transactions under IAS 24?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To disclose the nature of the relationship, the amount of transactions, and outstanding balances at the year-end.
Explanation
To make the financial statements understandable, IAS 24 requires disclosure of the relationship, transaction volumes, and any unpaid amounts at the balance sheet date.
More Related Party Transactions MCQs
- Q8ISA 550 requires the auditor to obtain a 'Written Representation' from management. What should this representation cover regarding related…
- Q9If an auditor is unable to obtain sufficient appropriate evidence regarding a significant undisclosed related party transaction, how might…
- Q10Which of the following documents is least likely to help in identifying related parties?
- Q1According to ISA 550, why do Related Party (RP) transactions pose a higher risk of material misstatement?
- Q2Management claims that all transactions with its parent company were conducted on 'Arm’s Length' terms. What is the auditor's…