The Minimum Disclosures for Related Party Transactions Include the Followings

question 11

Multiple Choice

The minimum disclosures for related party transactions include the followings, except:

• A) provision of doubtful debts related to outstanding balances;
• B) the amount of transactions;
• C) the amount of the outstanding balances and commitments;
• D) the key management personnel of the related party.

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Definitions:

Sell At Premium

Occurs when a financial instrument, such as a bond, is sold for a price higher than its face value.

Effective Interest Rate

The rate at which invested capital grows over a period, taking into consideration the effect of compounding.

Amortizing

The process of gradually writing off the initial cost of an asset over a period, especially in the context of loan repayments or in spreading the cost of intangible assets.

Preferred Method

A favored or recommended approach or technique selected among various alternatives for its effectiveness or efficiency.