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) Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
E) 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 assume that two entities having a director in common is enough to classify them as related parties. The director must have the ability to influence the financial and operating policies of both entities to be considered a related party.

Which of the Following Statements Is Not in Accordance with AASB