Which of the following statements is correct?
Which of the following statements is correct?
I. To enable users of financial statements to form a view about the effects of related party relationships on an entity, it is appropriate to disclose the related party relationship when control exists, irrespective of whether there have been transactions between the related parties.
II. If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements.
III. Disclosures that related party transactions were made on terms equivalent to those that prevail in arm’s length transactions are encouraged by GAAP.
IV. Government-controlled entities are within the scope of IFRSs, i.e. those that are profit-oriented are no longer exempted from disclosing transactions with other state-controlled entities.
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