IFRS,ASPE,and ASNPO require that related party transactions be disclosed.Gregorio Limited has a materiality threshold of $50 000.Which of the following standards apply to the disclosure of related party transactions for Gregorio Limited?
A)Disclose all transactions that are greater than the current year's materiality.
B)Disclose all related party transactions,even those below materiality.
C)Disclose those related party transactions that relate to officers or directors of the corporation.
D)Disclose those related party transactions that could affect the decisions of a user.

Question

Quizplus · Accepted Answer

Both IFRS and ASPE require that all related party transactions be disclosed regardless of their materiality. ASNPO also requires disclosure of related party transactions, but only those that could have a significant impact on the organization's financial statements. However, since Gregorio Limited has a materiality threshold of $50 000, it is better to disclose all related party transactions, even those below materiality, to provide users with a complete picture of the company's financial dealings with related parties.

IFRS,ASPE,and ASNPO Require That Related Party Transactions Be Disclosed