Discuss whether the ceos and coos claim

Reference no: EM132980701

Question: Hardwire Ltd's shares are owned by three of its individuals. The CEO owns 60% and the COO owns 25%. The third owner is a passive investor who does not help to manage the company. All ordinary shares of the company carry equal voting rights.

The son of the CEO and the daughter of the COO are husband and wife, and are the owners of Premier Ltd, one of the major suppliers of Hardwire Ltd. Premier Ltd meets the definition of related party of Hardwire Ltd under IAS 24 / AASB 124 Related Party Disclosures.

You as a finance director, have been intrusted by the CEO and the COO that none of the above information should be disclosed in the financial statements. The CEO and the COO are of the opinion that the above information is not relevant to the passive investor as they are the two major shareholders and already have all the information they need.

Required:

In accordance with IAS 24 / AASB 124 Related Party Disclosures, discuss whether the CEO's and COO's claim on not disclosing the related party information is justifiable.

Reference no: EM132980701

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