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

See similar textbooks

Similar questions

31) Baker Tilly MKM (Oman) LLC is the auditor of United Power Company SAOG (Company) and has stated that the financial statements has fairly presented the financial performance and the cash flow for the year. The preparation of financial statements is the primary responsibility of a) Board of Directors b) Internal auditors of United Power Company SAOG c) Baker Tilly MKM (Oman) LLC d) Management at United Power Company SAOG
As a future Chartered Accountant, member of a board of director or shareholder, you will ensure that the company you are working for/ own applies good corporate governance principles, which includes responsible and ethical practices. As a current Financial Accounting 132 student, what responsible and ethical practices can you implement within your personal life and within your academic studies? Give four examples.
I need the answer as soon as possible
A customer has filed a lawsuit against your company. Your attorneys have reviewed the facts of the case. They believe that it is reasonably possible (but not probable or certain) that the judge will award the plaintiff (your customer) up to $100,000. Which of the following is the proper accounting treatment for your company? Disclose the basic facts about the lawsuit in a financial statement footnote but do not record a liability. Record a liability by debiting a liability account and crediting retained earnings. Record a liability by debited a loss account and crediting a liability account. Record a liability by debiting retained earnings and crediting a liability account. Record a liability by debiting a liability account and crediting a loss account. Neither disclose the basic facts about the lawsuit nor record a liability
What is the required treatment of each of the below events in the financial statements? Justify your decisions. a) On 25 July 20X9, Carey settled and paid a claim involving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20X8. Five women who had been overlooked for management promotions undertook legal action in March 20X9. b) On 1 August 20X9, Carey Ltd made an announcement to the Singapore Stock Exchange of its intention to take over a private engineering partnership. This would increase sales revenue of Carey Ltd by 15%. It was to be funded by a 1:10 rights issue. c) On 12 August 20X9, a fire damaged the head office of Carey. The buildings, fixtures and fittings were only partly insured. d) At its 5 September 20X9 meeting, Carey’s board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.
Please give me answer very fast in 5 min saur
1. How does the role of a forensic accounting differ from a traditional accounting? 2. How does the role of a traditional accountant differ from internal and external auditor? 3. prepare 10 year professional development plan that will prepare you for a role in forencis.
Burton Howard, CFA, is an equity analyst with Maplewood Securities. Howard is preparinga research report on Confabulated Materials, SA, a publicly traded company based in Francethat complies with IFRS. As part of his analysis, Howard has assembled data gathered fromthe fi nancial statement footnotes of Confabulated’s 2009 Annual Report and from discussionswith company management. Howard is concerned about the eff ect of this information onConfabulated’s future earnings.Information about Confabulated’s investment portfolio for the years ended 31 December2008 and 2009 is presented in Exhibit 1. As part of his research, Howard is considering thepossible eff ect on reported income of Confabulated’s accounting classifi cation for fi xed incomeinvestments.EXHIBIT 1 Confabulated’s Investment Portfolio (€ Th ousands)Characteristic Bugle AG Cathay Corp Dumas SAClassifi cation Available-for-sale Held-to-maturity Held-to-maturityCost* €25,000 €40,000 €50,000Market value, 31 December 2008 29,000…
ABC Plc is a well-established public limited company listed on the NSE. It is currently undergoing its statutory annual audit from BDO, a reputable firm of accountants that been ABC's auditors and business advisors for more than 10 years. Over this period the managing partner of BDO has become a very good friend of the chief executive officer (CEO) of ABC Plc and their families regularly holiday together. The chairman of ABC Plc is expecting the audit to be signed off, but the audit partner managing the audit has suspicions around the adequacy of a series of provisions and whether contingent liabilities noted in the accounts would not more accurately be accounted for as provisions. She also disagrees with the capitalization of research expenditure and other intangible assets on the statement of financial position, rather than treating them as expenses in the statement of profit or loss. She has questioned the financial controller, who is a professionally qualified accountant, about…
Ee 288.