RELATED PARTY DISCLOSURES

1. Related parties include all of the following, except

- Two ventures simply because they share joint control over a joint venture

2. A related party transaction is a transfer

- Between related parties, regardless of whether a price is charged

3. Unrelated parties include which of the following

- Providers of finance in the normal course of business
- Government agencies
- Single customer with significanT volume of business

4. Close family members of an individual all, except

- Brothers and sisters of the individual

5. The minimum disclosures about related party transactions include all of the following, except
- Nature of the relationship

6. Which is not included in key management personnel compensation?

- Reimbursement of out- of- pocket expenses

7. Which of the following is not a mandated disclosure about related party transaction?
- Names of all the associates that an entity has dealt with during the year

8. Which of the following is not a required minimum disclosure about the related party transaction
- The amount of similar transaction with unrelated parties to establish that compatible
related party transaction has been entered at arms length

9. Related party transactions include all, except

- Sold a car to the angle of the entities financial director

10. All of the following are related party transaction, except

- Took out a huge bank loan

11. An entity that entered into a related party transaction would be required to disclose all, except
- The nature of any future transactions planned between the parties and the terms
involved

12. Which is not a required related party disclosure

- An entity that has common director with the entity

13. All of the following are related parties, except

- The partner of a key manager is a major supplier

14. Which of the following is not a related party

- An entity providing banking facilities
15. Which of the following should be included in key management personnel compensation
- Social Security contributions and post employment benefits

16. Financial statements shall include disclosure of material transactions between related parties,
except
- Sales of inventory by a subsidiary to the parent when consolidated financial statements
are prepared

17. Which should be disclosed as related party transaction in the entity’s separate financial
statements
- Key management personnel compensation and sales to affiliated entities

18. An entity has consigned to mortgage note on the home of its president guaranteeing the
indebtedness in the event that the president should default. The entity considers the likelihood
of default to be remote. How should the guarantee be treated in the financial statements
- Disclosed only

19. Which of the following transactions most likely would be a related party transaction requiring
disclosure
- The entity borrowed 500,000 from east West Bank with no scheduled terms for how or
when funds will be repaid