Louise Edwards is a newly appointed director of LaybyX Ltd, a listed company that provides financial services to consumers. Louise has provided consultancy services to LaybyX Ltd for the past 5 years. In the most recent financial year these services amounted to $500000. Required: Determine whether the consultancy service provided by Louise is a related party transaction that should be disclosed in the financial statements of LaybyX Ltd in accordance with AASB124 Related Party disclosures. Explain your answer.

Louise Edwards is a newly appointed director of LaybyX Ltd, a listed company that provides financial services to consumers. Louise has provided consultancy services to LaybyX Ltd for the past 5 years. In the most recent financial year these services amounted to $500000. Required: Determine whether the consultancy service provided by Louise is a related party transaction that should be disclosed in the financial statements of LaybyX Ltd in accordance with AASB124 Related Party disclosures. Explain your answer.

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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