Which of the Following Statements Is Not in Accordance with AASB

question 19

Multiple Choice

Which of the following statements is not in accordance with AASB 124 "Related Party Disclosures"?

• A) A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.
• B) If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements.
• C) Transactions between the reporting entity and its key management personnel are deemed material.
• D) Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
• E) In AASB 124 "Related Party Disclosures", two entities having a director in common are assumed related parties.

---

Definitions:

Huguenots

Members of the French Protestant group that faced severe persecution in the 16th and 17th centuries, leading many to flee France for other countries.

New France

The area colonized by France in North America from the 16th to the 18th century, including parts of contemporary Canada, the United States, and several Caribbean islands.

Catastrophic Decline

A severe and rapid decrease in the population, quality, or condition of something, often leading to its dire depletion or degradation.