For a Reporting Entity That Has Participated in Related-Party Transactions

question 15

Multiple Choice

For a reporting entity that has participated in related-party transactions that are material, disclosure in the financial report should include:

• A) the nature of the relationship and the terms and manner of settlement.
• B) details of the transactions within major classifications.
• C) a statement to the effect that a transaction was consummated on terms no less favourable than those that would have been obtained if the transaction had been with an unrelated party.
• D) a reference to deficiencies in the entity's internal control.

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Definitions:

Disappointing News

Information received that fails to meet expectations or hopes, often causing sadness or discouragement.

Emotionally Involved

The state of being deeply engaged with feelings or emotions, particularly in relation to a situation or cause.

Refusal-Before-Reason

A communication tactic where the denial or negative answer is given before explaining the reasons or rationale behind it.

Neutral Language

Language that avoids biases, emotions, or any form of prejudice, aiming to be objective and inclusive.