Question
a) Max is a newly appointed director of ABC Ltd, a listed company that organises major sporting events. Max has provided consultancy services to ABX
a) Max is a newly appointed director of ABC Ltd, a listed company that organises major sporting events. Max has provided consultancy services to ABX Ltd for the past 10 years. In the most recent financial year these services amounted to $400000.
Required
Determine whether the consultancy service provided by Max is a related party transaction that should be disclosed in the financial statements of ABC Ltd. Explain your answer.
b) Hasan holds 100% of the shares in Oil Ltd and he is also a director of Roma Ltd. All of the shares in Roma Ltd are held by Evans Ltd.
Required
Determine the related party relationships for Oil Ltd.
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Applying IFRS Standards
Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas
4th Edition
1119159229, 9781119159223
