The Definition of Related Parties Under AASB 124 Excludes Entities

question 33

Multiple Choice

The definition of related parties under AASB 124 excludes entities (other than those specified earlier in the relevant paragraph) where the related-party relationship:

• A) Is a relationship formed more than 5 years prior to the current reporting period.
• B) Results solely from normal dealings of local governments.
• C) Is a commonly known and transparent link between entities in the public sphere.
• D) Is based on a relationship to the directors through marriage only.
• E) None of the given answers.

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Definitions:

Sweatshop Labor

Work done in very poor conditions for low pay, often in factories that make fast fashion, electronics, and other consumer goods.

Pauper Labor Fallacy

The incorrect belief that importing goods from countries with lower wage levels harms the economy of the importing country.

Opportunity Cost

Giving up the chance for gain from multiple possibilities by choosing a specific alternative.

Wheat

A type of cereal grain that is grown worldwide and is a staple food in many regions, used to make products like bread, pasta, and flour.