Which of the following is typically a related party transaction within the provisions of AASB 124 "Related Party Disclosures"?
A) Transactions between two entities with a common non-executive director.
B) Transactions between two entities that share control over another joint venture.
C) Transactions between an entity and its biggest finance provider.
D) Transactions between entities under common control of another entity.
E) Transactions between entities with common auditors.

Question

Quizplus · Accepted Answer

Transactions between entities under common control of another entity are typically related party transactions within the provisions of AASB 124 as they involve entities that are closely related due to common control by a third party. Choices A, B, C, and E may be related party transactions in certain circumstances, but they do not necessarily meet the stricter definition of related party transactions under AASB 124.

Which of the Following Is Typically a Related Party Transaction