David Is the General Manager of Awesome Limited and Is

question 5

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?

• A) The purchase of product and David's remuneration.
• B) David's remuneration and the grant of options.
• C) The purchase of product and the grant of options.
• D) All of the above transactions are related party transactions.

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Definitions:

Tactile Corpuscle

Sensory receptors within the dermis layer of the skin, specifically designed to detect fine touch and texture sensation through mechanical stimulation.

Free Nerve Endings

Sensory nerve fibers terminating in the skin without any specialized structures, responsible for detecting pain, temperature, and touch.

Merkel Cells

Specialized skin cells involved in the sensation of touch.

Replenishment Cycle

The process and timeline involved in ordering and receiving new stock to replace sold or used inventory.