David Is the General Manager of Awesome Limited and Is

question 29

Multiple Choice

David is the general manager of Awesome Limited and is considered to be the member of key management personnel. The following transactions occurred between David and Awesome Limited:
?David purchased a product of Awesome Limited on normal trading terms;
?David received remuneration from Awesome Limited amounting to £100 000;
?Awesome Limited issued 20 000 options to David, which can be converted into Awesome Limited's shares if target profit margin of 25% is achieved in the next three years.
Which of the above transactions must be disclosed as related party transactions?

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Definitions:

Countercyclical Payment

A fiscal mechanism used to reduce the economic fluctuations by providing economic support during downturns and less support during growth periods.

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain level by buying excess supply or instituting price floors.

Government

The organization or system through which a community, state, or nation is governed, often involving regulations and public services.

2014 Agriculture Act

is a piece of legislation in the United States that made changes to food, agriculture, rural development, and nutrition policies.