What Do IASB Standards Say About Related Party Transactions

question 32

Multiple Choice

What do IASB standards say about related party transactions?

• A)They are illegal in most countries and must be avoided.
• B)Related party transactions should be eliminated from the financial statements.
• C)They must be disclosed in the notes to the financial statements.
• D)none of the above

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Definitions:

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often applied to correct undesirable actions.

Psychosocial Development

The process by which individuals understand themselves within the context of social relationships, including the development of personality, emotional growth, and social skills.

Negative Reinforcer

A reinforcer that, when removed, increases the frequency of a behavior.

Stimulus

A stimulus is any event or situation that evokes a specific response from an organism or a part of the body, in psychology often referring to anything that impacts behavior or perception.