Chapter 41. A party is related to an entity f the party directly or indirectly through one or more intermediariesA: All of these2. Related parties include all of the following exceptA: Two venturers simply because they share joint control over a joint venture.3. A related party transaction in a transfer of resources or obligationsA: Between related parties, regardless of whether a price is charged.4. What is control of one party by another party?A: The power to govern the financial and operating policies of an entity so as to obtain benefits.5. Unrelated parties include all of the following exceptA: Postemployment benefit plan for the benefit of the employees of the entity.6. This is a pricing policy between related parties which sets the price by reference to comparable goods sold in an economically comparable market to a buyer unrelated to the sellerA: Uncontrolled price method7. Close family members of an individual include all of the following except?A: Brothers and sisters of the individual.8. If there have been transactions between related parties an entity shall disclose A: Nature of the relationship and information about the transaction and outstanding balance9. The minimum disclosure about related party transactions include all of the following exceptA: Nature of the relationship.10. An entity that entered into certain related party transactions would be required to disclose all of the following information exceptA: Nature of any future transactions planned between the parties and the terms involved11. Which of the following is not a related party?A: A shareholder of the entity that holds one percent stake in the entity.12. Which of the following would not be considered compensation in relation to disclosure of key management personnel compensation?A: Reimbursement of out-of-pocket expenses13. Which of the following is not a mandated disclosure about related party transactions?A:Names of all of the associates that an entity has dealt with during the year14. Which of the following is not a required minimum disclosure about related party transaction?A: The amount of similar transaction with unrelated parties to establish that comparable related party transaction has been entered at arms length15. Which of the following is not required as a separate related party disclosure?A: Joint venture in which the entity is a venturer16. All of the following fall within the definition of a entitys related party exceptA: The partner of a key manager is a major supplier of the entity17. Which of the following should be included in key management personnel compensation?A: Social security contributions and postemployment benefits18. An entity has a subsidiary and is a venture in a joint venture. During the financial year-end, the entity sold goods to both subsidiary and joint venture. Consolidated financial statements are prepared combining the financial statements of the entity and the subsidiary. In the separate financial statements of the entity for the current year, disclosure is required for transactions withA: Both subsidiary and joint venture19. An entity completed the following transactions in the current year I. Sold a car to the uncle of the entitys finance director.II. Sold goods to another entity owned by the daughter of the entitys managing directorA: II only20. An entity has entered into a joint venture with an affiliate to secure access to additional inventory. Under the joint venture agreement, the entity will purchase the output of venture at prices negotiated on an arms length basis. Which of the following must be disclosed about the related party transaction?I. The amount due t the venture at the end of the reporting periodII. The peso amount of the purchases during the yearA: Both I & II21. A parent entity has a wholly-owned subsidiary. During the current year, the parent sold goods to the subsidiary. The subsidiary paid a part of the debt before the year-end and then encountered financial difficulties. The subsidiary is not expected to be able to pay the remainder of the balance and therefore it has been provided as uncollectible. Administration costs are incurred as a result of the parent credit controllers chasing the debt. All of the following are required t be disclosed in relation to this arrangement exceptA: The administration costs of the credit control department incurred in chasing the debt. 22. All of the following are related party transactions exceptA: Took out a huge bank loan23. Which of the following is not a related party of an entity?A: An entity providing banking facilities to the entity

24. Which of the following most likely would be a related party transaction requiring disclosure?A: The entity borrowed P500000 from Eastwest bank with no scheduled terms for how or when funds will be repaid.

25. Disclosures of related party transactions include all of the following exceptA: Sales of inventory by a subsidiary to the parent.