Which of the Following Statements Is Not in Accordance with AASB

question 9

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) In AASB 124 Related Party Disclosures, two entities having a director in common are assumed related parties.

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Definitions:

Legally Manufactured

Products that are made and distributed in accordance with the law.

Sedatives

Substances that induce sedation by reducing irritability or excitement, often prescribed to promote calmness or to induce sleep.

Absolute Threshold

The minimum intensity of a stimulus that one can perceive 50% of the time, marking the boundary between detectable and undetectable levels of sensory input.

Taste Constancy

The ability to perceive and recognize the taste of substances under varying conditions consistently.