Mr P has a 70% shareholding in Entity A.
Mr P has a 30% shareholding in Entity B.
Mr P controls Entity A and is able to exert significant influence over Entity B.
Mr P has a 25% shareholding in Entity A.
Mr P has a 30% shareholding in Entity B.
Mr P is able to exert significant influence over Entity A and Entity B.
Required:
For each situation above explain whether or not Entity A and Entity B are related parties.
Kindly provide the answer of above query
Ask the Tutor ACCA SBR
Related Party IAS-24
5y ago#1As always at this level, there may be no right and wrong and it's fine to say that he may be a RP.
First scenario - Mr P is RP of A and of B, AND A may be RP of B
Second scenario - Mr P is RP of A and of B. I am not convinced that A is a RP of B
Fortunately exam questions focus on the ethics of non-disclosure rather than the minutiae of disclosure!
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