Accdg. to PAS , related party disclosures are necessary * to indicate the possibility that an entity's financial position and performance might have been affected by the existence of such relationship because related party transactions may have resulted to assets and liabilities that were recognized in the financial statements of the reporting entity to notify users of financial statements of the fact that related party transactions may not have been made on arm's length basis in order to eliminate or minimize the effects of related party transactions on the FS of the reporting entity
Accdg. to PAS , related party disclosures are necessary * to indicate the possibility that an entity's financial position and performance might have been affected by the existence of such relationship because related party transactions may have resulted to assets and liabilities that were recognized in the financial statements of the reporting entity to notify users of financial statements of the fact that related party transactions may not have been made on arm's length basis in order to eliminate or minimize the effects of related party transactions on the FS of the reporting entity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accdg. to PAS , related party disclosures are necessary *
to indicate the possibility that an entity's financial position and performance might have been affected by the existence of such relationship
because related party transactions may have resulted to assets and liabilities that were recognized in the financial statements of the reporting entity
to notify users of financial statements of the fact that related party transactions may not have been made on arm's length basis
in order to eliminate or minimize the effects of related party transactions on the FS of the reporting entity
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