Start learning →

CA Inter AS 18 Related Party Disclosures — practice questions — page 2

Explore 44 free AS 18 Related Party Disclosures questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise AS 18 Related Party Disclosures with Quill →

AS 18 Related Party Disclosures questions and exercises with answers

Showing questions 31–44 of 44.

Ordinarily, which related party transactions are material by their nature?Read the answer and worked solution →Must AS 18 disclose effects of influences that lead to no transactions?Read the answer and worked solution →Without related party disclosures, users presume transactions are on what basis?Read the answer and worked solution →Which free provision does AS 18 cite as an unpriced related party deal?Read the answer and worked solution →Statutes pay special attention to deals with whom, given the fiduciary relationship?Read the answer and worked solution →Individuals with control or influence are related parties with whom?Read the answer and worked solution →Enterprises owned by directors or major shareholders are what under AS 18?Read the answer and worked solution →Which of these is usually key management personnel in a company?Read the answer and worked solution →An intermediary is a subsidiary as defined in which standard?Read the answer and worked solution →Which is cited as a way of exercising significant influence?Read the answer and worked solution →An investor with under 20 percent voting power is presumed to have what?Read the answer and worked solution →Significant influence may be gained by share ownership, statute or what?Read the answer and worked solution →If a regulator prohibits some required disclosure, AS 18 says what?Read the answer and worked solution →An enterprise is deemed able to appoint a director if the director is what?Read the answer and worked solution →

Worked practice questions

Ordinarily, which related party transactions are material by their nature?

  1. Those at market price
  2. Those outside normal business
  3. Those below 10 percent
  4. Those with subsidiaries
Show answer and solution

Correct answer: B. Those outside normal business

Transactions not entered into in the normal course of the enterprise's business are ordinarily treated as material by nature.

Open this question →

Must AS 18 disclose effects of influences that lead to no transactions?

  1. Yes, in a schedule
  2. Yes, for subsidiaries
  3. No, not required
  4. Yes, if it is material
Show answer and solution

Correct answer: C. No, not required

Management finds it inherently difficult to measure influences that produce no transactions, so the standard does not require disclosing them.

Open this question →

Without related party disclosures, users presume transactions are on what basis?

  1. Concessional basis
  2. Arm's length basis
  3. Barter basis
  4. Cost plus basis
Show answer and solution

Correct answer: B. Arm's length basis

Users normally assume deals are between independent parties at arm's length, which may be untrue when parties are related.

Open this question →

How to practise

  1. Choose a AS 18 Related Party Disclosures question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting