Discuss the related party party disclosure required in the financial statements of Terrier plc only.
Discuss the related party party disclosure required in the financial statements of Terrier plc only.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Discuss the related party party disclosure required in the financial statements of Terrier plc only.
![IAS 24 Related Party Disclosures requires adequate disclosure in the
statements of transactions between the entity and individuals/ businesses to whom it
is related.
i) Mr Bulldog owns all of the issued share capital of Terrier plc. During the year Mr
Bulldog purchased goods and services from Terrier at normal market terms.
Payment for the goods was made in full before the year-end.
ii) Terrier plc owns 30% of the shares in a bank, Pinscher plc. At the end of the year
Pinscher loaned £2 million to Terrier. The loan is for 2 years and is interest-free.
iii) Mr Bulldog's wife, Mrs Bulldog, is a senior director of Ridgeback Ltd. During the
year Ridgeback sold goods to Terrier. The transaction was at a 50% discount.
The balance is still outstanding at the year end.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41ffe9b8-a0f0-4af4-a410-336db3e210af%2Fd8b4740a-23e6-41cf-a118-bebcdd4e3f89%2F79ng2qi_processed.png&w=3840&q=75)
Transcribed Image Text:IAS 24 Related Party Disclosures requires adequate disclosure in the
statements of transactions between the entity and individuals/ businesses to whom it
is related.
i) Mr Bulldog owns all of the issued share capital of Terrier plc. During the year Mr
Bulldog purchased goods and services from Terrier at normal market terms.
Payment for the goods was made in full before the year-end.
ii) Terrier plc owns 30% of the shares in a bank, Pinscher plc. At the end of the year
Pinscher loaned £2 million to Terrier. The loan is for 2 years and is interest-free.
iii) Mr Bulldog's wife, Mrs Bulldog, is a senior director of Ridgeback Ltd. During the
year Ridgeback sold goods to Terrier. The transaction was at a 50% discount.
The balance is still outstanding at the year end.
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