User Account

All Pages

Why related party transactions are considered to of interest

Assignment Help Accounting Basics
Reference no: EM132576782

Adelaide Ltd is manufacturer of sporting goods based in South Australia. Smith Jones is a director of Adelaide Ltd. Smith owns a building that is leased to Adelaide Ltd for $50 000 per month. The going rate for such properties is $45 000 per month.

Question (a) Briefly explain whether or not the above transaction is a related party transaction in accordance with the requirements of AASB 124 Related Party Disclosures. Justify your answer with reference to the relevant paragraphs of the standard.

Question (b) Briefly explain why related party transactions are considered to be of interest to users of financial statements. Use the facts of the above case to illustrate your answer

Reference no: EM132576782

Questions Cloud

Explain between dividend yield and capital gains yield : Explain why some investors may be interested in the relationship over time between dividend yield and capital gains yield. Provide the suitable example.
What is the effective rate for six-month bills : What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
Find the payback period for the project : Find the payback period for the following project Project Y
Identify the characteristics of your chosen ethical theory : In your first post in this discussion, you will identify and apply one ethical theory of your choosing to a current problem in business, also of your choosing.
Why related party transactions are considered to of interest : Explain whether or not the above transaction is a related party transaction in accordance with the requirements of AASB 124 Related Party Disclosures.
Provide you with the greatest diversification benefit : Assume you hold the market portfolio. Which of the following stocks would provide you with the greatest diversification benefit?
In the modern business world : In the modern business world, which is more highly valued: being smart or being attractive?
What would the amount be as of december : What would the amount be as of December 31, 2020 for any Deferred Tax Asset / Liability? Be sure to specify whether it is an asset or liability.
Firms should stop doing business with customers : Discuss the notion that firms should stop doing business with customers who constantly generate losses versus the notion that the customer is always right

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd