GOLD Company has a 70% interest in Silver Company allowing GOLD to exercise control over the financial and operating decisions of Silver. Also, GOLD is a venturer in Olympics, Inc., with Bronze Company as its co-venturer. The following transactions transpired during the year: (1) GOLD sold goods to Silver (2) GOLD purchased goods from Bronze (3) GOLD invested additional capital to Olympics, Inc. (4) One of GOLD's executive directors serves in the board of directors of Bronze and was paid P50,000 as per-diem on attending BRONZE's annual stockholders' meeting.

GOLD Company has a 70% interest in Silver Company allowing GOLD to exercise control over the financial and operating decisions of Silver. Also, GOLD is a venturer in Olympics, Inc., with Bronze Company as its co-venturer. The following transactions transpired during the year: (1) GOLD sold goods to Silver (2) GOLD purchased goods from Bronze (3) GOLD invested additional capital to Olympics, Inc. (4) One of GOLD's executive directors serves in the board of directors of Bronze and was paid P50,000 as per-diem on attending BRONZE's annual stockholders' meeting.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following transactions are considered related party transactions under IAS 24, Related Party Disclosures?
a. 1 & 2
b. 2 & 3
c. 1 & 3
d. 1 & 4

GOLD Company has a 70% interest in Silver Company allowing GOLD to exercise control over the financial and operating decisions of Silver.
Also, GOLD is a venturer in Olympics, Inc., with Bronze Company as its co-venturer. The following transactions transpired during the year:
(1) GOLD sold goods to Silver
(2) GOLD purchased goods from Bronze
(3) GOLD invested additional capital to Olympics, Inc.
(4) One of GOLD's executive directors serves in the board of directors of Bronze and was paid P50,000 as per-diem on attending BRONZE's
annual stockholders' meeting.

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