1. Define related party.

Related parties - Parties are deemed connected if one of them has:

a) the power to exert influence on the opposing side
b) capacity to have substantial influence over the other party
c) The reporting entity is under shared control.

2. Give examples of related parties.

1. Affiliates are the parent, subsidiary, and other subsidiaries.
2. Associates are entities over which one party has great power.
3. A partner in a cooperative venture. It includes the joint venture's subsidiary or
subsidiaries.

3. Explain related party disclosures.

PAS 24, paragraph 12, mandates disclosure of related party connections if control
exists, regardless of whether transactions have occurred between related parties. In
other words, whether or not there have been transactions between the associated
parties, links between parents and subsidiaries must be declared.

4. What are the minimum disclosures for related party transactions?

a) The transaction's amount.
b) The outstanding debt, the terms and circumstances, whether secured or
unsecured, and the type of the consideration paid in settlement.
c) The provision for dubious accounts in relation to the outstanding amount.
d) The expenditure for doubtful accounts realized during the period in relation
to amounts owed to linked parties

5. Give examples of unrelated parties.

1. Two entities are linked solely because they share a director or key management
people.
2. Finance providers, trade unions, public utilities, and government agencies in the
course of their routine transactions with an entity for the sole purpose of such
dealings.