Question

PAS 24 - Related Party Disclosures
46   Which of the following is not required to be disclosed under PAS 24?
       a)   A parent-subsidiary relationship when there were transactions between them during the period.
       b)   A parent-subsidiary relationship when there were no transactions between them during the period.
       c)   Loans to officers
       d)   The name of the parent of the entity's associate.

Which of the following are not related parties under PAS 24?
a)   A parent and its subsidiaries
b)   An investor and its associates
c)   Family member of a CEO and the entity
d)   A shareholder holding 2% interest in the voting rights of the entity

48   What is the overriding consideration when determining the existence of a related party relationship?
       a)   Ability of one party to affect decisions of another party regarding relevant activities through the existence
           of control, joint control or significant influence.
       b)   The presence of relationship either by consanguinity or affinity.
       c)   The presence of significant interest by one party over the other.
       d)   The presence of significant business transactions and economic dependence between the parties.
PAS 26 - Acctng/Reporting By Retirement Benefit Plans
49   What is the main difference between the financial statements of a defined contribution plan (DCP) and a
   defined benefit plan (DBP)?
       a)   Financial statements of a defined contribution plan include a statement of net assets available for benefits.
       b)   The Financial statements of a defined benefit plan include a statement of changes in net assets available
           for benefits.
       c)   The financial statements of a defined contribution plan show information on the actuarial present value
           of promised retirement benefits.
       d)   Financial statements of a defined benefit plan show information on the actuarial present value of promised

50     WhiCH retirement benefits. of the following statements is correct?

a)   PAS 19 encourages but not require, involving a qualified actuary in measuring defined benefit obligations.
b)   PAS 26 applies only to defined benefit plans but not to defined contribution plans.
c)   Information on "excess" or "deficit" is required to be disclosed in the financial statements of a defined contribution plan.
d)   In practice, actuarial valuations are frequently prepared every year.

Answer 1

46. A parent-subsidiary relationship when there were no transactions between them during the period.

47. A shareholder holding 2% interest in the voting rights of the entity

48.Ability of one party to affect decisions of another party regarding relevant activities through the existence of control, joint control or significant influence.

49. The financial statements of a defined contribution plan show information on the actuarial present value of promised retirement benefits.