- 4 Marks
CR – Nov 2017 – L3 – Q2b – IAS 24: Related Party Disclosures
Explain the importance of disclosing related party relationships and transactions in financial statements.
Question
Related party relationships are a common feature of commercial life. The objective of IAS 24: Related Party Disclosures is to ensure that financial statements contain the necessary disclosures to make users aware of the possibility that financial statements may have been affected by the existence of related parties.
Required:
Explain TWO importance of disclosing related party relationships and transactions in financial statements.
Find Related Questions by Tags, levels, etc.
- Tags: Disclosure, Financial Statements, Related Party
- Level: Level 3
- Topic: IAS 24: Related Party Disclosure
- Series: NOV 2017
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