Transactions with and Amounts Receivable from or Payable to a Key

question 20

Multiple Choice

Transactions with and amounts receivable from or payable to a key management person and their related parties are excluded from additional disclosures when:

• A) the transactions occur within a normal employee, customer or supplier relationship on terms and conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with an unrelated person.
• B) the information about them does not have a potential to affect adversely decisions about the allocation of scarce resources made by the users of the financial report, or the discharge of accountability by the key management person.
• C) these are trivial or domestic in nature.
• D) All of the given answers are correct.

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Definitions:

Regional Economic Blocks

Groups of countries located in the same geographic area that form alliances to facilitate economic trade, promote economic growth, and coordinate regulatory policies.

Reshoring

The practice of bringing manufacturing and production back to the company's original country from overseas.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce.

Advantage

A condition or circumstance that puts one in a favorable or superior position, especially in competition or comparison contexts.