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The objective of Ind AS 24 is to ensure that financial statements draw users' attention to which of the following potential effects on the entity?
ATax planning arrangements between members of the same group
BRelated party relationships, transactions, balances and commitments
CGoing concern assumptions underlying the financial statements
DForeign currency exposure arising from cross-border transactions
Answer & Solution
Correct answer: B. Related party relationships, transactions, balances and commitments
Ind AS 24 specifically mandates disclosure of related party relationships, transactions, outstanding balances and commitments so users can assess how these affect financial statements. Foreign currency exposure is dealt with by Ind AS 21, tax planning by Ind AS 12 and going concern by Ind AS 1.
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