Reference no: EM132586757

Question i). The Sulafat Company has a 70% subsidiary Harbinger and is a venturer in Thabit, a joint venture company. During the financial year to 31 December 2017, Sulafat sold goods to both companies. Consolidated financial statements are prepared combining the financial statements of Sulafat and Harbinger. Under IAS24 Related party disclosures, in the separate financial statements of Sulafat for 2017, is separate disclosure required for transactions with Sulafat or Harbunger or Thabit. If any, why? Explain.

Question ii). The Druckman Company completed the following transactions in the year to 31 December 2017:
(1) Sold a car for Tk. 9,250 to the uncle of Druckman's finance director.
(2) Sold goods to the value of Tk.12,400 to Quokka, a company owned by the daughter of Druckman's managing director. Quokka has no other connection with Druckman. Which transactions, if any, require disclosure in the financial statements of Druckman under IAS24 Related party disclosures? Why?

Question iii). Eleanor is a director of The Tartarus Company. She also owns 65% of The Grison Company and is a director of, but not a shareholder in, The Flounder Company. Eleanor's husband is the sole shareholder in The Koala Company. Eleanor's daughter holds 5% of the shares in The Bluegill Company. The only involvement she has in the company is to receive dividends. Which TWO companies would be classified under IAS24 Related party disclosures as related parties of Tartarus?