Aladdin is the owner and founder of Genie Limited. Aladdin's wife, Jasmine, has a controlling investment in Jafar Limited. Which of the following describes the relationship between Genie Limited and Jafar Limited?

Question

Quizplus · Accepted Answer

Genie Limited is considered a related party of Jafar Limited because Jasmine, the owner of a controlling investment in Jafar Limited, is also the wife of Aladdin, the owner and founder of Genie Limited. Disclosure about transactions with Jafar Limited may be required in the financial statements of Genie Limited. However, there is no information to indicate that Genie Limited has control over Jafar Limited, so option D is incorrect. Option A is also incorrect as the two companies have a relationship through their common ownership by Aladdin and Jasmine.

Aladdin Is the Owner and Founder of Genie Limited