Under IAS 24,which of These Would Not Be a Related

question 6

Multiple Choice

Under IAS 24,which of these would not be a related party to entity AX?

• A)BX,an entity also in the X group
• B)Y,an entity controlled by the spouse of a key manager of AX
• C)CAS,an entity located close to AX
• D)AZ,an entity which,like AX,is a joint venture of A group

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Definitions:

Apparent Authority

The ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent.

Principal

A person on whose behalf an agent acts.

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.