Asked by Langle Eunice on May 07, 2024
Verified
The minimum disclosures for related party transactions include the following, except:
A) the amount of transactions.
B) the key management personnel of the related party.
C) the amount of the outstanding balances and commitments.
D) provision of doubtful debts related to outstanding balances.
Doubtful Debts
Accounts receivable that a company believes are unlikely to be collected due to the debtor's financial difficulties.
Key Management Personnel
Individuals having authority and responsibility for planning, directing, and controlling the activities of an entity, typically including top-level managers and directors.
- Familiarize yourself with the consequences that transactions among related parties have on the documentation and revealing of financial data.
Verified Answer
VG
Vanessa GarciaMay 08, 2024
Final Answer :
B
Explanation :
The key management personnel of the related party is not considered a minimum disclosure requirement for related party transactions. Minimum disclosures typically focus on the financial aspects and impacts of the transactions, such as the amount of transactions, outstanding balances and commitments, and provisions for doubtful debts.
Learning Objectives
- Familiarize yourself with the consequences that transactions among related parties have on the documentation and revealing of financial data.
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