Graded Discussion Board 01
Financial Accounting II (MGT401)
Learning Objective: Students will be able to apply the principles of International Accounting Standards (IAS) 24.
Creative ltd. is a maker of spare parts for automobiles. Company executes its business through a business model that has functioned for quite a long time and has made the organization a successful business, which is ranked among top 20 business enterprises of its field by the business community. Creative ltd. has confidence in working with trustworthy and responsible vendors/dealers furthermore; it offers its products only to the enterprises that it can either control or practice ‘significant influence’ over. The details regarding business dealings are as follows:
Requirement: As per IAS 24, which of the above mentioned transactions would be disclosed as related party transactions? Also justify your answer by giving valid reasons.
1. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
2. Obnoxious or ignoble answer should be strictly avoided.
3. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
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chanda kya matlab ?? .....ab aap hi kuch bta doo k iss gdb ka kya karna hai???
yar kisi ko kuch samuj nagi arahe hay
g bilkul zaria Ma'am page 8 pe jo usi sy match krna hy k konsa related hy konsa ni or kuj reason deny hy k kis base pe related unrelated hy
besht of luckyyyyyyy :P
Plz follow zahid usman comments
for further understanding read following then answer each point by giving logic with ref to IAS 24 as following
According to the International Accounting Standards (IAS) 24 a party is related to an entity if:
(a) Directly or indirectly through one or more intermediaries, it: − Controls, is controlled by, or is under common control with, the entity (this includes parents, subsidiaries and fellow subsidiaries); − Has an interest in the entity that gives it significant influence over the entity; or − Has joint control over the entity;
(b) It is an associate;
(c) It is a Joint Venture in which the entity is a ventured;
(d) It is the member of the key management personnel of the entity or its parents;
(e) It is a close member of the family of an individual referred to in (a) or (d);
(f) It is an entity that is controlled, jointly controlled or significantly influenced by; or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (d) or (e); or
(g) It is a post employment benefit plan for the benefit of employees of the entity, or of any entity that is a related party of the entity.
First is not related transaction, all others are...Zahid usman it is cfm from net.
to zargham Ma'am first ka sirf yahi likh dy k yeh related transaction ni hy ????
creative ltd only purchase from reliable supplier since last 5 years ..they not purchase any thing from another supplier ...so zargham you dont thing so..they are related to each other..............they are related party transaction...think about it
i think so that first one is not a related transaction
first one is not a related transaction
why sweety.......it is not related transaction ...can u explain the reason??