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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Related Party IAS-24
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
As 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!