The definition of related parties relies on three key terms.These are:
A) Directors, control and significant influence.
B) Input, effect and common control.
C) Authorised trustee corporations, material influence, control.
D) Common control, directors, material influence.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The definition of related parties relies on the terms "directors" (referring to those holding a position as a director of the reporting entity or its parent), "control" (referring to the ability to govern the financial and operating policies of the entity) and "significant influence" (referring to the power to participate in the financial and operating policies of the entity).

The Definition of Related Parties Relies on Three Key Terms