Which of the following statements is not in accordance with AASB 124 Related Party Disclosures?
A) A related-party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.
B) If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements.
C) Transactions between the reporting entity and its key management personnel are deemed material.
D) In AASB 124 Related Party Disclosures, two entities having a director in common are assumed related parties.

Question

Quizplus · Accepted Answer

AASB 124 does not automatically assume that two entities with a common director are related parties; the relationship must be assessed based on control or significant influence.

Which of the Following Statements Is Not in Accordance with AASB