Discuss whether entity should classified as reporting entity

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Reference no: EM132513607

Question 1: In each situation below, discuss whether the entity should be classified as a Reporting Entity.

a) Zema Pty Ltd is a small proprietary company. The four members of the board of directors own 75% of the ordinary shares. The remaining 25% of the shares are owned by family members of the directors. The company has 10 employees who have worked for the company for a number of years. The company has bank borrowings of $500 000 and four major suppliers.

b) LMN Pty Ltd is a proprietary company. It has approximately 90 employees and three shareholders/directors managing the company. It has a bank overdraft facility of $60 000.

Reference no: EM132513607

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