When an entity assesses if two parties are related, the entity treats a party with significant influence the same way it would treat the relationship that exists between the entity and a member of its key management personnel.

Question

Quizplus · Accepted Answer

In accounting and financial reporting, a party that has significant influence over the entity is considered a related party, similar to the relationship between the entity and its key management personnel, due to the ability to affect financial and operating policies.

When an Entity Assesses If Two Parties Are Related, the Entity