What AASB 1048?
AASB 1048 identifies the Australian Interpretations and classifies them into two groups: those that correspond to an IASB Interpretation and those that do not. Entities are required to apply each relevant Australian Interpretation in preparing financial statements that are within the scope of the Standard.
What is considered a related party transaction?
The term related-party transaction refers to a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest.
Which is not considered a related party transaction?
Common key management. However, entities that are under common control by a state (that is, a national, regional or local government) are not considered related unless they engage in significant transactions or share resources to a significant extent with one another.
How do arm’s length transactions differ from the related party transactions?
An arm’s length transaction is a negotiation between two parties where the parties are not related. This type of event does not involve any insider trading between the parties, and there is no undue influence on either party to accept terms that differ from those currently accepted in the market.
How do you identify key management personnel?
Guidance. AASB 124.9 defines Key Management Personnel (KMP) as those persons having the authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, i.e. those charged with decision-making responsibilities.
Which of the following is an example of a non adjusting event?
Examples of non-adjusting events, that would generally result in disclosure (continued), include: • announcing a major restructuring after reporting date; • major ordinary share transactions; • abnormally large changes, after the reporting date.
What are arm’s length transactions?
The expression “at arm’s length” is commonly used to refer to transactions in which two or more unrelated and unaffiliated parties agree to do business, acting independently and in their self-interest.
Is director a related party?
Mr L, Mr M and Mr N are directors and the relatives of these Directors are considered as related parties.
What is a non arm’s length transaction?
A non-arm’s length transaction occurs when the buyer and seller have a personal relationship. A deal between friends, family or co-workers is considered to be a non-arm’s length transaction. With these home sales, self-interest may not be the motivation, for instance, when parents sell their home to an adult child.