Related party transactions:
A)must be valued as if they were arm's length.
B)must be assumed to be valued differently than if they were arm's length.
C)must be disclosed in the financial statements.
D)must be disclosed in the financial statements and the auditor's report.

Question

Quizplus · Accepted Answer

Related party transactions must be disclosed in the financial statements to inform users of the potential impact on the financial results and position. However, there is no requirement for assuming they are valued differently than if they were arm's length, and the auditor's report may or may not include details about related party transactions depending on the specific circumstances.

Related Party Transactions