alleryStart learning →A company may state its related party deals were at arm's length only if:
AThe board has approved them
BThe auditor is a Big Four firm
CPrices match the book value
DSuch terms can be substantiated
Answer & Solution
Correct answer: D. Such terms can be substantiated
The standard allows an arm's length statement only when the terms can be backed up with evidence.
Keep practising Ind AS 24 Related Party Disclosures and Ind AS 108 Operating Segments
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Related questions
The core principle of Ind AS 108 is to help users evaluate the:Where equity-method investments sit in segment assets, the entity discloses:Which item is disclosed if in the decision maker's profit measure?Entities known to be under common control are treated, for major customers, as:Geographical non-current assets exclude:Geographical revenue must be shown for the country of domicile and:Which revenue must be reported for each product or service group?Entity-wide disclosures in paragraphs 32 to 34 apply to: