Which of the Following Statements Is Not in Accordance with IAS

question 27

Multiple Choice

Which of the following statements is not in accordance with IAS 24 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)In IAS 24 Related Party Disclosures, two entities having a director in common are assumed related parties.

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Definitions:

Middle Ear

The air-filled space located between the eardrum and inner ear containing three small bones that transmit sound vibrations.

Sampling Distribution

The probability distribution of a statistic obtained through repeated sampling from a population.

Independent Samples

Refers to samples drawn from two populations where the selection of a sample from one population is not influenced by the selection from the other.

Population Means

The average value of a particular characteristic in the entire population.