{"entries":[{"key":"LX.IAS24.000001","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"OBJECTIVE_ALERT","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"understand"},"references":["IAS 24 §1","IAS 24 §5"],"exercise":{"prompt":{"fr":"","en":"A reader of a company's accounts sees one more sale to a customer, without knowing that the customer is linked to a manager. Which idea in IAS 24 explains related party disclosure?","es":""},"explanation":{"fr":"","en":"Rule to remember: IAS 24 requires disclosure that draws attention to the possible effect of related parties, their transactions and their balances (IAS 24).","es":""},"common_error":{"fr":"","en":"Seeing the standard as a tool for correcting prices rather than for disclosure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Such a relationship can affect the accounts without the figures showing it; disclosure alerts the reader","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Sales to related parties must be restated by the entity at market price before being recorded","es":""},"correct":false,"feedback":{"fr":"","en":"This option imposes a restatement at market price, which is not the object of the standard: it requires disclosure that draws the reader's attention (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Relationships with related parties are abnormal and the entity should seek to reduce them in its business","es":""},"correct":false,"feedback":{"fr":"","en":"These relationships are a normal feature of business; the standard does not seek to reduce them (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"The reader must be able to recalculate profit as if related parties did not exist in the accounts","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks to draw attention to the possible effect, not to provide a recalculated profit (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000002","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.APPLICATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SEPARATE_STATEMENTS_INVESTOR","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-scope"},"references":["IAS 24 §3"],"exercise":{"prompt":{"fr":"","en":"Related party disclosure is also required in the separate financial statements of an investor with significant influence over an investee.","es":""},"explanation":{"fr":"","en":"Rule to remember: disclosure is required in the financial statements of an investor with joint control or significant influence, including separate statements (IAS 24).","es":""},"common_error":{"fr":"","en":"Believing that only the parent company is concerned.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000003","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.INTRAGROUP"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"INTRAGROUP_CONSOLIDATED_VS_SEPARATE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-intragroup"},"references":["IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"Kalmera SA, a parent, sold €620,000 of goods to its subsidiary Kalmera Distribution. How is this sale treated in Kalmera's consolidated statements and in the subsidiary's separate statements?","es":""},"explanation":{"fr":"","en":"Rule to remember: transactions with other group entities are presented in the entity's statements and eliminated in consolidation (IAS 24).","es":""},"common_error":{"fr":"","en":"Reversing the two treatments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Eliminated in the consolidated statements; presented in the subsidiary's separate statements","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Presented in both sets of financial statements, because the subsidiary and the parent are related parties","es":""},"correct":false,"feedback":{"fr":"","en":"In consolidation, the intragroup transaction is eliminated, not presented (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Eliminated in both sets, as the subsidiary need not present transactions with the group","es":""},"correct":false,"feedback":{"fr":"","en":"The subsidiary's separate statements present its transactions with other group entities (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Presented in the consolidated statements, but eliminated in the subsidiary's separate statements","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: elimination in consolidation, presentation in the entity's statements (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000004","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.OBJECTIVE","IAS24.SCOPE.APPLICATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SCOPE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-scope"},"references":["IAS 24 §1","IAS 24 §2","IAS 24 §3","IAS 24 §5"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements among these claims about IAS 24.","es":""},"explanation":{"fr":"","en":"Rule to remember: IAS 24 requires disclosure (relationships, transactions, balances) in consolidated and separate statements, without prohibiting anything (IAS 24).","es":""},"common_error":{"fr":"","en":"Attributing a power of prohibition to the standard or limiting it to consolidated accounts.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"IAS 24 prohibits any transaction with a related party that was not made at market price.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard prohibits nothing: it requires disclosure of relationships, transactions and balances (IAS 24).","es":""}},{"id":"s2","text":{"fr":"","en":"Disclosure is required in a parent's consolidated financial statements, but not in its separate financial statements.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard applies to the consolidated and separate financial statements of a parent (IAS 24).","es":""}},{"id":"s3","text":{"fr":"","en":"The standard covers the identification of relationships and balances, the circumstances in which disclosure is required and its content.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"IAS 24 aims to draw attention to the possible effect of related parties, their transactions and their balances on financial position and profit or loss.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000005","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.INTRAGROUP"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"INTRAGROUP_FILL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-intragroup"},"references":["IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on intragroup items.","es":""},"explanation":{"fr":"","en":"Rule to remember: in consolidated statements, intragroup transactions and balances with related parties are eliminated (IAS 24).","es":""},"common_error":{"fr":"","en":"Confusing the elimination of intragroup items with that of related parties outside the group.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"In the consolidated financial statements, {{b1}} transactions and balances with related parties are {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"with associates","es":""}},{"id":"c2","text":{"fr":"","en":"intragroup","es":""}},{"id":"c3","text":{"fr":"","en":"with key management personnel","es":""}}],"answer":"c2"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"presented by category","es":""}},{"id":"c2","text":{"fr":"","en":"eliminated","es":""}},{"id":"c3","text":{"fr":"","en":"carried to the next year","es":""}}],"answer":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000006","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.INTRAGROUP","IAS24.INTERACTIONS.IFRS10"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCIAL","tested_point":"INVESTMENT_ENTITY_EXCEPTION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-investment-entity"},"references":["IAS 24 §4","IAS 24 §3"],"exercise":{"prompt":{"fr":"","en":"The Valmere fund is an investment entity that holds subsidiaries measured at fair value through profit or loss. What does IAS 24 provide for transactions and balances between the fund and those subsidiaries in the consolidated statements?","es":""},"explanation":{"fr":"","en":"Rule to remember: the elimination does not apply between an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24).","es":""},"common_error":{"fr":"","en":"Applying elimination mechanically without checking investment entity status.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Intragroup items are eliminated as in an ordinary group, with no exception for funds","es":""},"correct":false,"feedback":{"fr":"","en":"An exception exists for an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Intragroup items are eliminated, the fund consolidating its subsidiaries like any parent","es":""},"correct":false,"feedback":{"fr":"","en":"The exception covers transactions and balances between an investment entity and its subsidiaries measured at fair value through profit or loss; being a parent does not displace it (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"The fund presents no information on its subsidiaries, which fall outside the scope of IAS 24","es":""},"correct":false,"feedback":{"fr":"","en":"Non-elimination means these items remain presented, not that they fall outside the scope (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"The elimination of intragroup items does not apply between the fund and those subsidiaries","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000007","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.APPLICATION","IAS24.SCOPE.INTRAGROUP","IAS24.INTERACTIONS.IFRS10"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCIAL","tested_point":"SCOPE_FILE_CHECK","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"judgment"},"references":["IAS 24 §2","IAS 24 §3","IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"A professional prepares a group's scope file before drafting the related party note. Which of these checks belongs to that step?","es":""},"explanation":{"fr":"","en":"Rule to remember: one distinguishes what is eliminated in consolidation from what remains to be disclosed, taking account of the investment entity exception (IAS 24), for each set of statements (IAS 24).","es":""},"common_error":{"fr":"","en":"Treating all sets of statements the same way.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Distinguishing what is eliminated from what is disclosed in each set of statements, and spotting an investment entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Removing from the note transactions with associates, as elimination applies to the whole range of related parties","es":""},"correct":false,"feedback":{"fr":"","en":"Elimination concerns intragroup items, not related parties outside the consolidation scope (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Limiting the note to the consolidated statements, the separate statements not being concerned by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard also applies to separate financial statements (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Setting a minimum amount below which intragroup transactions need not be examined","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no minimum amount for the treatment of intragroup items (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000008","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.RELATED_PARTY_PERSON"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PERSON_SIGNIFICANT_INFLUENCE","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-person"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Mr Hadley has significant influence over entity Z, without being a manager or holding control. Is he a related party of Z?","es":""},"explanation":{"fr":"","en":"Rule to remember: a person with significant influence over the entity is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Reserving related party status for managers and controllers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, a person must control or run Z to be a related party","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence is among the criteria of the definition, alongside control (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, if he has entered into at least one transaction with Z","es":""},"correct":false,"feedback":{"fr":"","en":"Related party status does not depend on the existence of transactions (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"No, an individual is related only through an employment contract with the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The definition covers control, significant influence and the role of key manager, with no employment-contract condition (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, significant influence is enough to make him a related party of Z","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000009","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.RELATED_PARTY_PERSON","IAS24.DEFINITIONS.CLOSE_FAMILY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PERSON_FAMILY_OF_INFLUENCER","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-person"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"The spouse of a person who has significant influence over the entity is also covered by the definition of a related party.","es":""},"explanation":{"fr":"","en":"Rule to remember: the definition covers the person or a close member of their family (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Forgetting the relatives of the person with significant influence.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000010","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.RELATED_PARTY_PERSON","IAS24.DEFINITIONS.KEY_MANAGEMENT","IAS24.DEFINITIONS.CLOSE_FAMILY"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PERSON_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-person"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Classify each person according to whether they are a related party of the entity Tolven SA under the definition alone.","es":""},"explanation":{"fr":"","en":"Rule to remember: a person is related if they (or a close family member) have control, joint control, significant influence or are key managers of the entity or of its parent (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Setting aside close family or the parent's managers.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Related party of Tolven SA","es":""}},{"id":"c2","text":{"fr":"","en":"Not related under this definition alone","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The chief executive of Tolven SA's parent","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The child of a director of Tolven SA","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"The dependant of a key manager of Tolven SA","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"A person who has joint control of Tolven SA","es":""},"category":"c1"},{"id":"i5","text":{"fr":"","en":"An employee of Tolven SA with no authority to plan, direct or control, and no other link","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"A private customer of Tolven SA, with no other link","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000011","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CLOSE_FAMILY"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CLOSE_FAMILY_LIST","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-family"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Which of these persons are in the list of close family members of a key manager given by the standard?","es":""},"explanation":{"fr":"","en":"Rule to remember: the list includes children, spouse or partner, children of the spouse or partner and dependants (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Counting friends or distant relatives in the list.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The children of their spouse or partner","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Their childhood best friend","es":""},"correct":false,"feedback":{"fr":"","en":"A friend is not a close family member listed by the standard (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"A person who is their dependant","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A distant cousin, with no particular relationship","es":""},"correct":false,"feedback":{"fr":"","en":"This relative is not in the list; he would be assessed on the facts, without being listed (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000012","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CLOSE_FAMILY"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CLOSE_FAMILY_JUDGEMENT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-family"},"references":["IAS 24 §9","IAS 24"],"exercise":{"prompt":{"fr":"","en":"A key manager's mother is not named in the list of close family members. How should her status be concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: for a relative not in the list, one assesses on the facts whether he or she may influence the person or be influenced by the person (IAS 24, para. 9; IFRS Interpretations Committee agenda decision, May 2015, accompanying material).","es":""},"common_error":{"fr":"","en":"Treating the list as closed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"She is excluded, because the standard's list is closed and does not include ascendants","es":""},"correct":false,"feedback":{"fr":"","en":"The list is not exhaustive: other relatives may qualify on the facts (IAS 24, para. 9) (IFRS Interpretations Committee agenda decision, May 2015).","es":""}},{"id":"B","text":{"fr":"","en":"She is assessed on the facts: possible influence matters, the list not being exhaustive","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"She is included, the ascendants of a key manager being covered by the definition","es":""},"correct":false,"feedback":{"fr":"","en":"There is no automatic inclusion: the criterion is possible influence in either direction (IAS 24, para. 9; IFRS Interpretations Committee agenda decision, May 2015, accompanying material).","es":""}},{"id":"D","text":{"fr":"","en":"She is related if she holds securities of the entity, otherwise not","es":""},"correct":false,"feedback":{"fr":"","en":"Holding securities is not the close family criterion; one looks at possible mutual influence (IAS 24, para. 9; IFRS Interpretations Committee agenda decision, May 2015, accompanying material).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000013","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.KEY_MANAGEMENT","IAS24.DEFINITIONS.TRANSACTION","IAS24.DEFINITIONS.CLOSE_FAMILY","IAS24.DEFINITIONS.CONTROL_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"TERMS_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-kmp"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Match each notion to its description.","es":""},"explanation":{"fr":"","en":"Rule to remember: key management personnel are defined by authority and responsibility (IAS 24, para. 9); close family is a non-exhaustive list (IAS 24, para. 9); a transaction exists with or without a price (IAS 24); significant influence is assessed under the dedicated standard (IAS 24).","es":""},"common_error":{"fr":"","en":"Mixing up the descriptions of close family and key management personnel.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Key management personnel","es":""}},{"id":"l2","text":{"fr":"","en":"Close family (list)","es":""}},{"id":"l3","text":{"fr":"","en":"Related party transaction","es":""}},{"id":"l4","text":{"fr":"","en":"Significant influence","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Transfer of resources, services or obligations between related parties, with or without a price","es":""}},{"id":"r4","text":{"fr":"","en":"Notion assessed under the dedicated standard, with no percentage of its own in IAS 24","es":""}},{"id":"r1","text":{"fr":"","en":"Persons having authority and responsibility for planning, directing and controlling activities, directly or indirectly","es":""}},{"id":"r2","text":{"fr":"","en":"Including children, spouse or partner, children of the spouse or partner and dependants","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000014","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.TRANSACTION","IAS24.DEFINITIONS.KEY_MANAGEMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"TRANSACTION_KMP_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-transaction"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: a transaction exists with or without a price (IAS 24) and key management personnel are defined by the function actually performed (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Requiring a price and relying on the job title.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The director title on a person's business card is enough to establish that they belong to key management personnel.","es":""},"erroneous":true,"correction":{"fr":"","en":"What counts is actual authority and responsibility for planning, directing and controlling activities (IAS 24, para. 9).","es":""}},{"id":"s2","text":{"fr":"","en":"A related party transaction requires the entity to charge its counterparty a price.","es":""},"erroneous":true,"correction":{"fr":"","en":"A transaction exists whether or not a price is charged (IAS 24).","es":""}},{"id":"s3","text":{"fr":"","en":"An interest-free loan granted to the entity by one of its key managers is a related party transaction.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The key managers of the entity's parent are related parties of the entity.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000015","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.KEY_MANAGEMENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"KMP_FILL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-kmp"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Complete the definition of key management personnel.","es":""},"explanation":{"fr":"","en":"Rule to remember: key management personnel have authority and responsibility for planning, directing and controlling, directly or indirectly, directors included (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Associating key manager status with seniority or pay level.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Key management personnel are the persons having {{b1}} and responsibility for planning, directing and controlling the entity's activities, {{b2}}, directors included.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"authority","es":""}},{"id":"c2","text":{"fr":"","en":"seniority","es":""}},{"id":"c3","text":{"fr":"","en":"pay","es":""}}],"answer":"c1"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"by express delegation of the board","es":""}},{"id":"c2","text":{"fr":"","en":"directly or indirectly","es":""}},{"id":"c3","text":{"fr":"","en":"within the legal boundary of the entity","es":""}}],"answer":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000016","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.TRANSACTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"TRANSACTION_FREE_USE","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-transaction"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"A company lets a fellow subsidiary of the group use a warehouse free of charge for six months. What should be concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: free provision of an asset between related parties is a transfer of resources, hence a transaction (IAS 24).","es":""},"common_error":{"fr":"","en":"Reserving the notion of transaction for invoiced operations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not a transaction, since the fellow subsidiary pays no price","es":""},"correct":false,"feedback":{"fr":"","en":"The price is not what makes the transaction: the transfer of resources is enough (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"A transfer of resources between related parties: a transaction even without a price","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is a transaction provided a written contract provides for later invoicing","es":""},"correct":false,"feedback":{"fr":"","en":"No invoicing, present or future, is needed for there to be a transaction (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"It is a transaction if the value of the use exceeds a threshold set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The definition of a transaction contains no value threshold (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000017","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CONTROL_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONTROL_TERMS_NO_THRESHOLD","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000002","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-control-terms"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"To decide whether a person has significant influence over the entity, does IAS 24 impose a voting-rights percentage?","es":""},"explanation":{"fr":"","en":"Rule to remember: control, joint control and significant influence are assessed under the dedicated standards, with no threshold of IAS 24's own (IAS 24).","es":""},"common_error":{"fr":"","en":"Importing an ownership percentage into IAS 24.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No percentage specific to IAS 24: the notion is assessed on the facts, under the dedicated standard","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A majority of the entity's voting rights, as for control","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 sets no voting percentage; a majority would relate to control, assessed elsewhere (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"A different percentage depending on the entity's business sector","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no sector-specific percentage for these notions (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"The person's presence on the board of directors","es":""},"correct":false,"feedback":{"fr":"","en":"Sitting on the board is neither necessary nor sufficient to define significant influence: facts are assessed under the dedicated standard (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000018","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES","IAS24.RELATIONSHIPS.ASSOC_JV","IAS24.RELATIONSHIPS.CONTROLLED_BY_PERSON"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ENTITY_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-group"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Classify each entity according to whether it is related to the reporting entity Nerval SA through a path in the definition.","es":""},"explanation":{"fr":"","en":"Rule to remember: the same group, the associate and the entity controlled by a related person are paths in the definition; an ordinary supplier or lender is not (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Placing an ordinary supplier or lender among related parties.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Related to Nerval SA","es":""}},{"id":"c2","text":{"fr":"","en":"Not related through a path in the definition","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The company that controls Nerval SA","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"A fellow subsidiary of the same parent","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"An associate of Nerval SA","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"A company controlled by a director of Nerval SA","es":""},"category":"c1"},{"id":"i5","text":{"fr":"","en":"A supplier of Nerval SA, with no other link","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"A bank that finances Nerval SA on usual terms","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000019","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"GROUP_SISTER","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-group"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Sovane Nord and Sovane Sud are two subsidiaries of the same parent. Why are they related parties of each other?","es":""},"explanation":{"fr":"","en":"Rule to remember: entities in the same group are related parties of each other (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Looking for a transaction or cross-holding between fellow subsidiaries.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because they have already entered into transactions with each other","es":""},"correct":false,"feedback":{"fr":"","en":"The group relationship does not depend on transactions (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Because each holds an interest in the other's capital","es":""},"correct":false,"feedback":{"fr":"","en":"No cross-holding is required: belonging to the same group is enough (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Because they belong to the same group","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because they share the same auditor","es":""},"correct":false,"feedback":{"fr":"","en":"A common auditor is not among the paths in the definition (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000020","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES","IAS24.RELATIONSHIPS.ASSOC_JV","IAS24.RELATIONSHIPS.CONTROLLED_BY_PERSON"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"PATH_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-jv"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Match each situation of entity Ardane SA to the path in the definition that makes it related.","es":""},"explanation":{"fr":"","en":"Rule to remember: each entity is related through a path in the definition: group, associate, joint venture, entity controlled by a related person (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Confusing significant influence (associate) with joint control (joint venture).","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Ardane SA controls Brisal SA (case datum: majority of the voting rights)","es":""}},{"id":"l2","text":{"fr":"","en":"Ardane SA has significant influence over Corlim SA","es":""}},{"id":"l3","text":{"fr":"","en":"Ardane SA and another operator share control of Dunal SAS by agreement","es":""}},{"id":"l4","text":{"fr":"","en":"Ardane SA's finance director controls Evrin SARL","es":""}}],"right":[{"id":"r2","text":{"fr":"","en":"Associate","es":""}},{"id":"r3","text":{"fr":"","en":"Joint venture","es":""}},{"id":"r4","text":{"fr":"","en":"Entity controlled by a related person","es":""}},{"id":"r1","text":{"fr":"","en":"Same group (parent and subsidiary)","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000021","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_JV"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"JV_RELATED_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-jv"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"A joint venture in which the entity is a venturer is a related party of that entity.","es":""},"explanation":{"fr":"","en":"Rule to remember: the associate or joint venture of an entity is a related party of that entity (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Not seeing the joint venture as a related party of the venturer.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000022","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.CONTROLLED_BY_PERSON","IAS24.DEFINITIONS.KEY_MANAGEMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"CONTROLLED_BY_KEY_MANAGER","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-controlled"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"An entity's chief executive and an outside partner jointly control a workshop that sells parts to the entity. Is the workshop a related party of the entity?","es":""},"explanation":{"fr":"","en":"Rule to remember: an entity controlled or jointly controlled by a related person is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Setting the entity aside because it is also an ordinary supplier.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, control shared with a third party is not control within the meaning of the definition","es":""},"correct":false,"feedback":{"fr":"","en":"The definition also covers entities jointly controlled by a related person (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because it is jointly controlled by a person related to the entity, its key manager","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No, because the workshop is a mere supplier of the entity","es":""},"correct":false,"feedback":{"fr":"","en":"Being a supplier does not rule out the link where another connection exists, here joint control by a manager (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, if the chief executive holds the majority of the workshop's capital","es":""},"correct":false,"feedback":{"fr":"","en":"Joint control is enough; the definition requires no capital majority (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000023","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES","IAS24.RELATIONSHIPS.ASSOC_JV","IAS24.RELATIONSHIPS.CONTROLLED_BY_PERSON"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RELATIONSHIP_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-group"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements on related entities.","es":""},"explanation":{"fr":"","en":"Rule to remember: the group, the associate and control by a related person create the relationship with no transaction condition (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Making the relationship depend on a contract or a transaction.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"An associate of the entity is a related party of the entity.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A company controlled by a key manager of the entity becomes related to the entity only after entering into a contract with it.","es":""},"erroneous":true,"correction":{"fr":"","en":"The relationship arises from the control exercised by the related person, not from a contract (IAS 24, para. 9).","es":""}},{"id":"s3","text":{"fr":"","en":"A subsidiary and the parent of its parent belong to the same group and are related.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"Two subsidiaries of the same parent are related to each other only if they have carried out transactions.","es":""},"erroneous":true,"correction":{"fr":"","en":"Belonging to the same group is enough, with no transaction condition (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000024","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_SUBSIDIARIES"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ASSOCIATE_SUBSIDIARY","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-subs"},"references":["IAS 24 §12"],"exercise":{"prompt":{"fr":"","en":"Inver SA has significant influence over Prolan SA, its associate. Prolan SA controls Sublan SA. Inver SA holds no interest in Sublan SA. What is the link between Inver SA and Sublan SA?","es":""},"explanation":{"fr":"","en":"Rule to remember: the subsidiary of an associate and the investor with significant influence over that associate are related to each other (IAS 24).","es":""},"common_error":{"fr":"","en":"Requiring a direct interest in the associate's subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are related, because the associate includes its subsidiaries","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They are not related, Inver SA holding no interest in Sublan SA","es":""},"correct":false,"feedback":{"fr":"","en":"The link goes through the associate, which includes its subsidiaries; no direct interest is required (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"They are related if they carry out transactions with each other","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship does not depend on the existence of transactions (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"They are related if Inver SA also has significant influence over Sublan SA","es":""},"correct":false,"feedback":{"fr":"","en":"Significant influence concerns the associate; the associate's subsidiary is included without a second test (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000025","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.THIRD_PARTY_JV"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"JV_SAME_THIRD_PARTY","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-third-party"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Mav SAS and Nor SAS are each a joint venture of the Tolar group. They have no interest in each other and no transactions. Are they related parties of each other?","es":""},"explanation":{"fr":"","en":"Rule to remember: two joint ventures of the same third party are related (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Looking for a direct link between the two joint ventures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, for lack of a direct link or transaction between them","es":""},"correct":false,"feedback":{"fr":"","en":"The link goes through the common third party of which both are joint ventures (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"No, because two entities are related through a third party if that party consolidates them","es":""},"correct":false,"feedback":{"fr":"","en":"The definition does not go through consolidation: it covers joint ventures of the same third party (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, if one of the two lends money to the other","es":""},"correct":false,"feedback":{"fr":"","en":"No loan is required for the relationship to exist (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, because two joint ventures of the same third party are related","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000026","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.THIRD_PARTY_JV","IAS24.RELATIONSHIPS.ASSOC_JV"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"THIRD_PARTY_PAIRS","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-third-party"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Among these pairs of entities, which are related through one of the common-third-party paths of the definition?","es":""},"explanation":{"fr":"","en":"Rule to remember: two joint ventures of the same third party are related, as are a joint venture and an associate of that third party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Seeing a link in any situation where two entities share a partner.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Two joint ventures of the same third party","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Two suppliers of the same joint venture","es":""},"correct":false,"feedback":{"fr":"","en":"Supplying the same joint venture is not a path in the definition; these are normal dealings (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"A joint venture of a third party and an associate of that third party","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Two important customers of the same third party","es":""},"correct":false,"feedback":{"fr":"","en":"A shared economic dependence does not as such create a related party relationship (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000027","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_SUBSIDIARIES","IAS24.RELATIONSHIPS.THIRD_PARTY_JV","IAS24.RELATIONSHIPS.ASSOC_JV","IAS24.EXCLUSIONS.JOINT_VENTURERS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"GROUP_MAP_MINI","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS24.000003","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"judgment"},"references":["IAS 24 §9","IAS 24 §11","IAS 24 §12"],"exercise":{"prompt":{"fr":"","en":"Map of Pallar SA's related entities","es":""},"explanation":{"fr":"","en":"Rule to remember: one looks for a path in the definition for each pair of entities: associate and its subsidiary, joint venture, joint ventures of the same third party; sharing joint control does not link the venturers (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Concluding by proximity without a path in the definition.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Pallar SA has significant influence over Evora SA, which controls Evora Logistique SA. Pallar SA is a venturer in Tessel SAS with a third party, the Tarn group. The Tarn group is also a venturer in Ulmar SAS, with another operator; Pallar SA is not a party to Ulmar SAS. Pallar SA sells machines to Ulmar SAS.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each entity according to whether it is related to Pallar SA on these facts alone.","es":""},"explanation":{"fr":"","en":"Rule to remember: the associate, its subsidiary and the joint venture are related; another venturer is not on that ground alone (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Treating the other joint venturer as related: two joint venturers are not related for that reason alone.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Related to Pallar SA","es":""}},{"id":"c2","text":{"fr":"","en":"Not related to Pallar SA on these facts","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Evora SA (associate)","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Evora Logistique SA (subsidiary of the associate)","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Tessel SAS (joint venture of Pallar SA)","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The Tarn group (other venturer in Tessel SAS)","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Ulmar SAS (entity in which Pallar SA has no part)","es":""},"category":"c2"}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Tessel SAS is a joint venture of the Tarn group, as is Ulmar SAS. What can be said of Tessel SAS and Ulmar SAS in relation to each other?","es":""},"explanation":{"fr":"","en":"Rule to remember: two joint ventures of the same third party are related (IAS 24, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are not related, the Tarn group being a mere venturer","es":""},"correct":false,"feedback":{"fr":"","en":"The common third party links its two joint ventures to each other (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"They are related because Pallar SA sold to one of them","es":""},"correct":false,"feedback":{"fr":"","en":"A sale by Pallar SA has no effect on the link between these two joint ventures (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"They are related if Pallar SA is also a party to Ulmar SAS","es":""},"correct":false,"feedback":{"fr":"","en":"The link between them does not depend on Pallar SA (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"They are related, because they are two joint ventures of the same third party","es":""},"correct":true}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Pallar SA sells machines to Ulmar SAS. On these facts alone, is this sale a transaction with a related party of Pallar SA?","es":""},"explanation":{"fr":"","en":"Rule to remember: a path in the definition is needed between the two entities; sharing joint control of a joint venture does not link the venturers to each other on that ground alone (IAS 24, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: nothing links Pallar SA to Ulmar SAS, and joint control of Tessel SAS with Tarn is not enough","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, because Ulmar SAS and Tessel SAS are related to each other and Tessel SAS is related to Pallar SA, the link carrying over","es":""},"correct":false,"feedback":{"fr":"","en":"A link between two entities is not passed on step by step: a path in the definition is needed between Pallar SA and Ulmar SAS (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because the Tarn group is a common venturer in Tessel SAS and Ulmar SAS","es":""},"correct":false,"feedback":{"fr":"","en":"Sharing joint control does not as such make the venturers related to each other (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, because Pallar SA has done an important volume of business with Ulmar SAS","es":""},"correct":false,"feedback":{"fr":"","en":"An important volume of business does not as such create a related party relationship (IAS 24).","es":""}}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000028","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.SUBSTANCE_OVER_FORM"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SUBSTANCE_NOMINEE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-substance"},"references":["IAS 24 §10","IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"On the register, a company is held by a nominee; the facts show that a director of the entity decides everything and receives its profits. How should the relationship be assessed?","es":""},"explanation":{"fr":"","en":"Rule to remember: attention is directed to the substance of the relationship and not merely its legal form, with no threshold imposed (IAS 24).","es":""},"common_error":{"fr":"","en":"Concluding from the registered shareholder without examining the facts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By its legal form: the nominee is the registered shareholder, so the link does not appear","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks to look at the substance of the relationship and not merely its legal form (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"By its substance: the company may be controlled by a person related to the entity","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"By an ownership threshold set by IAS 24, which the nominee does not cross","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 sets no ownership threshold for assessing substance (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"By waiting for a written contract binding the director to the company before concluding","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship is assessed on the facts (decisions, profits), without awaiting a contract (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000029","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.SUBSTANCE_OVER_FORM"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SUBSTANCE_THRESHOLD_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-substance"},"references":["IAS 24 §10"],"exercise":{"prompt":{"fr":"","en":"IAS 24 sets an ownership percentage below which the substance of a relationship need no longer be examined.","es":""},"explanation":{"fr":"","en":"Rule to remember: the substance of the relationship is assessed with no numeric threshold imposed (IAS 24).","es":""},"common_error":{"fr":"","en":"Looking in the standard for a percentage that excuses analysing the facts.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000030","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.SUBSTANCE_OVER_FORM"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SUBSTANCE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-substance"},"references":["IAS 24 §10"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the substance of a relationship.","es":""},"explanation":{"fr":"","en":"Rule to remember: substance is judged on the facts, with no percentage imposed and without being limited to legal form (IAS 24).","es":""},"common_error":{"fr":"","en":"Reducing the analysis to form or to a percentage.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"For each possible relationship, attention is directed to the substance and not merely the legal form.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The substance of a relationship is measured by an ownership percentage set by the standard.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard imposes no percentage: it is a judgement on the facts (IAS 24).","es":""}},{"id":"s3","text":{"fr":"","en":"The analysis of substance rests on the facts: who decides, who benefits, who influences.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"A complex legal structure is enough to rule out a related party relationship.","es":""},"erroneous":true,"correction":{"fr":"","en":"One looks at the substance of the relationship and not merely its legal form (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000031","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.POST_EMPLOYMENT_PLAN"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PLAN_RELATED_ENTITY_EMPLOYEES","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-plan"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Pension fund F is set up for the benefit of the employees of company S. Entity E, which belongs to the same group as S, pays contributions to it. Is fund F a related party of E?","es":""},"explanation":{"fr":"","en":"Rule to remember: a post-employment plan for the benefit of employees of the entity or of a related entity is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Excluding the plan because it is not owned by the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because E itself has no employees in fund F","es":""},"correct":false,"feedback":{"fr":"","en":"The definition also covers plans for the benefit of employees of an entity related to the entity (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"No, a pension fund is an independent third party, hence not a related party","es":""},"correct":false,"feedback":{"fr":"","en":"A post-employment plan can be a related party in the cases provided by the definition (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because the plan is set up for employees of an entity related to E","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, if E holds at least part of the fund's assets","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship arises from the plan's purpose (its beneficiaries), not from holding its assets (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000032","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.MANAGEMENT_ENTITY"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"SERVICES","tested_point":"MANAGEMENT_ENTITY_RELATED","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-mgmt-entity"},"references":["IAS 24 §9","IAS 24 §17A"],"exercise":{"prompt":{"fr":"","en":"The management company Optima places its finance director at the disposal of entity E and charges for this service. Is Optima a related party of E?","es":""},"explanation":{"fr":"","en":"Rule to remember: the entity (or a member of its group) that provides key management personnel services to the entity or its parent is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Seeing the management company as a mere service provider.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because Optima is an independent service provider invoicing at the agreed price","es":""},"correct":false,"feedback":{"fr":"","en":"The definition covers the entity that provides key management personnel services, however it invoices (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because it provides E with key management personnel services","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No, because the finance director remains an employee of Optima and not of E","es":""},"correct":false,"feedback":{"fr":"","en":"Being an Optima employee does not rule out the relationship: what counts is the supply of key management services (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, if Optima holds an interest in E","es":""},"correct":false,"feedback":{"fr":"","en":"No interest is required for this path in the definition (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000033","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.SUBSTANCE_OVER_FORM","IAS24.RELATIONSHIPS.POST_EMPLOYMENT_PLAN","IAS24.RELATIONSHIPS.MANAGEMENT_ENTITY","IAS24.KMP.MANAGEMENT_ENTITY_RELIEF"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"SERVICES","tested_point":"ZEPHYR_MINI","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS24.000004","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"judgment"},"references":["IAS 24 §9","IAS 24 §10","IAS 24 §17A","IAS 24 §18A"],"exercise":{"prompt":{"fr":"","en":"Zéphyr SA's counterparties","es":""},"explanation":{"fr":"","en":"Rule to remember: each counterparty is treated under a path in the definition (plan, management entity, control in substance), then the disclosure is adjusted: amounts incurred for the management entity (IAS 24, para. 9) (IAS 24, para. 17A) (IAS 24, para. 18A).","es":""},"common_error":{"fr":"","en":"Treating the counterparties by legal form alone.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Zéphyr SA has four counterparties: (1) the pension fund for the employees of its fellow subsidiary; (2) the management company Arvil, which supplies its finance director; (3) Delmar SARL, whose registered partner is a nominee but whose decisions are taken by Zéphyr SA's chairman; (4) a bank that finances it on usual terms.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each counterparty according to whether it is a related party of Zéphyr SA.","es":""},"explanation":{"fr":"","en":"Rule to remember: the plan of a related entity, the management entity and the entity controlled in substance by a related person are related parties; the lender on usual terms is not as such (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Treating the bank as related because it finances the entity: a lender on normal terms is not related as such.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Related party of Zéphyr SA","es":""}},{"id":"c2","text":{"fr":"","en":"Not a related party as such","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The pension fund for the fellow subsidiary's employees","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The management company Arvil","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Delmar SARL","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The bank on usual terms","es":""},"category":"c2"}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Zéphyr SA obtains the services of its finance director from Arvil. What does it disclose for these services?","es":""},"explanation":{"fr":"","en":"Rule to remember: for key management services obtained from a management entity, one discloses the amounts incurred (IAS 24, para. 17A) (IAS 24, para. 18A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amounts incurred for those services, not the pay Arvil gives its staff","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The full pay Arvil gives the director, category by category and in total","es":""},"correct":false,"feedback":{"fr":"","en":"The entity need not apply the category disclosure to what the management entity pays its staff (IAS 24, para. 17A).","es":""}},{"id":"C","text":{"fr":"","en":"No information, since the director is not an employee of Zéphyr SA","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts incurred for these services are to be disclosed (IAS 24, para. 18A).","es":""}},{"id":"D","text":{"fr":"","en":"The recruitment cost of the director borne by Arvil","es":""},"correct":false,"feedback":{"fr":"","en":"It is the amounts incurred by Zéphyr SA for these services that are disclosed (IAS 24, para. 18A).","es":""}}],"id":"p2","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"Which document does the professional keep to justify that Delmar SARL is a related party?","es":""},"explanation":{"fr":"","en":"Rule to remember: the conclusion on substance is documented by the facts that establish it and the path in the definition adopted (IAS 24, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The register extract, which names the nominee","es":""},"correct":false,"feedback":{"fr":"","en":"The register reflects legal form; the conclusion rests on substance (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"A calculation of ownership percentage showing that Zéphyr SA's chairman holds no shares in Delmar SARL","es":""},"correct":false,"feedback":{"fr":"","en":"Lack of ownership does not settle it: the standard imposes no percentage and looks at substance (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"A statement from the bank confirming that Delmar SARL repays its loans","es":""},"correct":false,"feedback":{"fr":"","en":"Delmar SARL's creditworthiness is unrelated to the related party link with Zéphyr SA (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"The facts showing that Zéphyr SA's chairman decides for Delmar SARL, linked to the definition","es":""},"correct":true}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000034","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR","IAS24.EXCLUSIONS.JOINT_VENTURERS","IAS24.EXCLUSIONS.NORMAL_DEALINGS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"EXCLUSIONS_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-normal"},"references":["IAS 24 §9","IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"For the entity Garnel SA, classify each situation according to whether it creates a related party relationship or not on that ground alone.","es":""},"explanation":{"fr":"","en":"Rule to remember: a common director, shared joint control, normal dealings and economic dependence do not as such create a related party relationship (IAS 24).","es":""},"common_error":{"fr":"","en":"Placing any important partner or common director among related parties.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Related through a path in the definition","es":""}},{"id":"c2","text":{"fr":"","en":"Not related on that ground alone","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A subsidiary of Garnel SA","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The joint venture in which Garnel SA is a venturer","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"A company that shares a single director with Garnel SA","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"A trade union with which Garnel SA deals in the usual way","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Another venturer in that joint venture, with no other link","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"A customer on which Garnel SA is economically dependent, without control or significant influence","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000035","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.NORMAL_DEALINGS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"ENERGY","tested_point":"PUBLIC_UTILITY_TF","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-normal"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"A public utility with which the entity deals in the usual way, with no control or significant influence, is a related party of the entity solely because of those dealings.","es":""},"explanation":{"fr":"","en":"Rule to remember: normal dealings with a public utility do not as such create a related party relationship (IAS 24).","es":""},"common_error":{"fr":"","en":"Seeing a related party in any public body one deals with.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000036","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.NORMAL_DEALINGS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"FRANCHISOR_DEPENDENCE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-normal"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"A franchisor imposes its operating standards on a retailer and takes part in some decisions; the retailer buys most of its goods from it. With no control or significant influence, what should be concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: a franchisor, customer, supplier or distributor with which the entity does an important volume of business is not related solely because of economic dependence (IAS 24).","es":""},"common_error":{"fr":"","en":"Drawing a related party link from dependence or influence on decisions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The franchisor is a related party, because it restricts the retailer's freedom of action","es":""},"correct":false,"feedback":{"fr":"","en":"Restricting freedom of action does not as such make a related party (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"The franchisor is a related party, because it takes part in the retailer's decision-making","es":""},"correct":false,"feedback":{"fr":"","en":"Taking part in decision-making through normal dealings does not as such create a related party relationship (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"The franchisor is not, as such, a related party because of these dealings","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The franchisor is not a related party, but would become one if the volume of purchases exceeded half of the retailer's purchases","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage of purchases that would make a franchisor related (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000037","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR","IAS24.EXCLUSIONS.JOINT_VENTURERS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EXCLUSIONS_MC","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-jv"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Which of these situations do not, as such, create a related party relationship between the two entities concerned?","es":""},"explanation":{"fr":"","en":"Rule to remember: a common director and shared joint control do not as such make the entities related (IAS 24).","es":""},"common_error":{"fr":"","en":"Concluding that any common point between two entities creates a link.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A company and its associate","es":""},"correct":false,"feedback":{"fr":"","en":"The associate is a related party of the company that has significant influence over it (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Two companies that have a director in common and no other link","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A company and the subsidiary it controls","es":""},"correct":false,"feedback":{"fr":"","en":"A subsidiary is related to its parent: the group is a path in the definition (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Two venturers who share joint control of the same joint venture","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000038","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR","IAS24.EXCLUSIONS.JOINT_VENTURERS","IAS24.EXCLUSIONS.NORMAL_DEALINGS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"EXCLUSIONS_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-common"},"references":["IAS 24 §11","IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in a trainee's working note.","es":""},"explanation":{"fr":"","en":"Rule to remember: economic dependence and shared joint control do not as such create a related party relationship (IAS 24); the joint venture and its venturer are related (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Confusing economic dependence, shared control and a related party relationship.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The joint venture and its venturer are related parties of each other.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"Two venturers are related as soon as they share joint control of a joint venture.","es":""},"erroneous":true,"correction":{"fr":"","en":"Sharing joint control does not as such link the venturers to each other (IAS 24).","es":""}},{"id":"s3","text":{"fr":"","en":"Two entities that have a key manager in common are not related on that ground alone.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"A supplier with which the entity does an important volume of business is a related party because of the economic dependence.","es":""},"erroneous":true,"correction":{"fr":"","en":"Economic dependence does not as such create a related party relationship (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000039","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"COMMON_DIRECTOR_PLUS_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-common"},"references":["IAS 24 §11","IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Mr Faure is a director of company P and controls company Q. Do companies P and Q have a related party link?","es":""},"explanation":{"fr":"","en":"Rule to remember: a common director is not enough as such; another connection, such as control by a related person, can make the entities related (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Applying the common-director exclusion without looking for another connection.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: another connection exists, because Q is controlled by a person related to P","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: they have a director in common, which is not enough","es":""},"correct":false,"feedback":{"fr":"","en":"Here the person does more than sit on a board: they control Q, which is another connection (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"No: Mr Faure's control of Q is a personal matter with no effect on P","es":""},"correct":false,"feedback":{"fr":"","en":"An entity controlled by a person related to P is itself a related party of P (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, if P and Q have entered into at least one transaction","es":""},"correct":false,"feedback":{"fr":"","en":"Transactions do not condition the related party relationship (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000040","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IAS28_IFRS11","IAS24.EXCLUSIONS.JOINT_VENTURERS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"JV_STANDARDS_APPROACH","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS24.000005","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-standards"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Alvar SA and Bretel SA each operate a share of a joint wind project. Alvar SA must determine whether the project is its joint venture and whether Bretel SA is related to it. Which approach is right?","es":""},"explanation":{"fr":"","en":"Rule to remember: the notions of joint venture and associate are assessed under IFRS 11 and IAS 28; IAS 24 draws the consequences, and sharing joint control does not link the venturers (IAS 24).","es":""},"common_error":{"fr":"","en":"Concluding on relationships without going through the analysis under the dedicated standards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classify Bretel SA as a related party, since it shares the project with Alvar SA, without examining IFRS 11 or IAS 28","es":""},"correct":false,"feedback":{"fr":"","en":"Sharing a project does not as such link the venturers to each other (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"First assess under the dedicated standards whether the project is a joint venture, then apply IAS 24","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Apply to Bretel SA and the project whichever classification gives the most disclosure, as a precaution for readers","es":""},"correct":false,"feedback":{"fr":"","en":"The classification results from the analysis under the dedicated standards and the definition, not from a precautionary choice (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Set in IAS 24 a percentage interest in the project above which it is a joint venture, depending on the sector","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 sets no percentage: the notions of joint venture and associate belong to the dedicated standards (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000041","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PARENT_AND_ULTIMATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-parent"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Radel SA is controlled by Radel Holding, itself controlled by Ms Orsini, an individual. Radel Holding publishes consolidated statements. Which names does Radel SA disclose?","es":""},"explanation":{"fr":"","en":"Rule to remember: the entity discloses the name of its parent and, if different, of the party exercising ultimate control (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Naming only one of the two.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Radel Holding, without mentioning Ms Orsini since the parent already publishes consolidated statements","es":""},"correct":false,"feedback":{"fr":"","en":"The party exercising ultimate control is named if different from the parent (IAS 24, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"Radel Holding, its parent, and Ms Orsini, the party exercising ultimate control","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Ms Orsini, without mentioning Radel Holding since ultimate control prevails","es":""},"correct":false,"feedback":{"fr":"","en":"The name of the parent is disclosed in all cases, in addition to that of the ultimate controlling party (IAS 24, para. 13).","es":""}},{"id":"D","text":{"fr":"","en":"No name until Radel SA has carried out a transaction with these parties","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure is given irrespective of transactions (IAS 24, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000042","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PARENT_NAME_ONLY_WITH_TRANSACTIONS","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-parent"},"references":["IAS 24 §13","IAS 24 §14"],"exercise":{"prompt":{"fr":"","en":"An entity need only disclose the name of its parent if it carried out transactions with it during the year.","es":""},"explanation":{"fr":"","en":"Rule to remember: parent-subsidiary relationships are disclosed irrespective of transactions (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Making the disclosure about the parent depend on transactions.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000043","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.NEXT_SENIOR"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NEXT_SENIOR_CHAIN","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-next"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Chain of control: Mivel SA ← Mivel Group ← Iller International ← Iller Fund (ultimate controlling party). Neither Mivel Group nor Iller Fund publishes consolidated statements; Iller International does. Which names does Mivel SA disclose?","es":""},"explanation":{"fr":"","en":"Rule to remember: if neither the parent nor the ultimate controlling party publishes consolidated statements, the next most senior parent that does is added (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Replacing the names of the parent and ultimate control with that of the parent that publishes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Mivel Group and Iller Fund, which are the parent and the ultimate controlling party of the entity Mivel SA","es":""},"correct":false,"feedback":{"fr":"","en":"Since neither publishes, the next parent that publishes must also be named (IAS 24, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"Iller International, which is the company publishing consolidated statements","es":""},"correct":false,"feedback":{"fr":"","en":"The parent and the ultimate controlling party remain named; Iller International is added (IAS 24, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"Mivel Group and Iller International, Iller Fund not being a company","es":""},"correct":false,"feedback":{"fr":"","en":"The party exercising ultimate control is named even if it is not a company (IAS 24, para. 13).","es":""}},{"id":"D","text":{"fr":"","en":"Mivel Group (parent), Iller Fund (ultimate control) and Iller International (parent that publishes)","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000044","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"PARENT_FILL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-parent"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on the parent and the ultimate controlling party.","es":""},"explanation":{"fr":"","en":"Rule to remember: the parent and the ultimate controlling party, if different, are named irrespective of transactions (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Making the parent's name conditional on transactions.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The entity discloses the name of its parent and, if {{b1}}, of the party exercising ultimate control, {{b2}} transactions.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"a legal entity","es":""}},{"id":"c2","text":{"fr":"","en":"located abroad","es":""}},{"id":"c3","text":{"fr":"","en":"different","es":""}}],"answer":"c3"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"irrespective of","es":""}},{"id":"c2","text":{"fr":"","en":"provided there have been","es":""}},{"id":"c3","text":{"fr":"","en":"unless there have been no","es":""}}],"answer":"c1"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000045","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE","IAS24.PARENT.RATIONALE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"PARENT_NOTE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-why"},"references":["IAS 24 §13","IAS 24 §14","IAS 24 §15"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in this draft note on the parent.","es":""},"explanation":{"fr":"","en":"Rule to remember: the note names the parent and the ultimate controlling party with no transaction condition (IAS 24, para. 13), and is additional to IAS 27 and IFRS 12 (IAS 24).","es":""},"common_error":{"fr":"","en":"Making the note depend on transactions or believing it can replace IAS 27.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The IAS 24 disclosure on parent-subsidiary relationships replaces that of IAS 27 and IFRS 12.","es":""},"erroneous":true,"correction":{"fr":"","en":"This disclosure is additional to the requirements of IAS 27 and IFRS 12 (IAS 24).","es":""}},{"id":"s2","text":{"fr":"","en":"The note names the entity's immediate parent.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The note does not name the ultimate controlling party, since it has no transaction with the entity.","es":""},"erroneous":true,"correction":{"fr":"","en":"The control relationship is disclosed even without a transaction (IAS 24, para. 13).","es":""}},{"id":"s4","text":{"fr":"","en":"Where neither the parent nor the ultimate controlling party publishes consolidated statements, the note names the next parent that does.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000046","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.RATIONALE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHY_DISCLOSE_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-why"},"references":["IAS 24 §14","IAS 24 §15"],"exercise":{"prompt":{"fr":"","en":"A subsidiary had no transaction with its parent this year but still discloses its control relationship. Why?","es":""},"explanation":{"fr":"","en":"Rule to remember: the control relationship is disclosed even without a transaction, and is additional to the IAS 27 and IFRS 12 requirements (IAS 24).","es":""},"common_error":{"fr":"","en":"Looking for the justification in a transaction or a guarantee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the control relationship is disclosed whenever it exists, even without a transaction","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because the standard requires each subsidiary to have at least one transaction a year with its parent","es":""},"correct":false,"feedback":{"fr":"","en":"No transaction is required: the disclosure is given even without a transaction (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Because this disclosure replaces that of IFRS 12 on parent-subsidiary relationships","es":""},"correct":false,"feedback":{"fr":"","en":"It is additional to the requirements of IAS 27 and IFRS 12 and does not replace them (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Because the parent guarantees the subsidiary's debts, which creates a commitment to disclose","es":""},"correct":false,"feedback":{"fr":"","en":"The reason for the disclosure is control itself, not a possible guarantee (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000047","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE","IAS24.PARENT.NEXT_SENIOR"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PARENT_CHAIN_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000006","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-next"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"In the chain of control of the entity Odrel SA, classify each item according to whether it is to be named under the disclosure about the parent.","es":""},"explanation":{"fr":"","en":"Rule to remember: one names the parent, the ultimate controlling party if it differs, and if needed the next parent that publishes; customers and suppliers are outside this rule (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Including commercial third parties in the disclosure about the parent.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"To be named","es":""}},{"id":"c2","text":{"fr":"","en":"Not to be named under this disclosure","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Odrel SA's immediate parent","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The party exercising ultimate control, if it differs from the parent","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"The next most senior parent that publishes consolidated statements, when neither the parent nor ultimate control publishes","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"An important customer of Odrel SA","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"A supplier of the parent company","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000048","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"COMPENSATION_CATEGORIES_LIST","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Which list matches the categories of key management personnel compensation to be disclosed?","es":""},"explanation":{"fr":"","en":"Rule to remember: the five categories are: short-term, post-employment, other long-term, termination benefits, share-based payment (IAS 24).","es":""},"common_error":{"fr":"","en":"Replacing a category with a payroll item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fixed salary, variable salary, benefits in kind, expense reimbursements, attendance fees","es":""},"correct":false,"feedback":{"fr":"","en":"These items may fall within the categories but are not the five required categories (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Short-term, post-employment, other long-term benefits, termination benefits, share-based payment","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Short-term benefits, profit sharing, dividends, rents, loans","es":""},"correct":false,"feedback":{"fr":"","en":"Dividends, rents and loans belong to other transactions or to shareholder status, not to the compensation categories (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Short-term benefits, long-term benefits, pensions, redundancy payments, loyalty bonuses, profit sharing","es":""},"correct":false,"feedback":{"fr":"","en":"This list omits share-based payment, one of the five categories (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000049","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"KMP_TOTAL_SIMPLE","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"numeric-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Malvik SA's key managers received: short-term benefits €410,000, post-employment €38,000, other long-term €22,000, termination benefits €60,000, share-based payment €52,000. Calculate the total to disclose.","es":""},"explanation":{"fr":"","en":"410,000 + 38,000 + 22,000 + 60,000 + 52,000 = €582,000. Rule to remember: the total is the sum of the five categories (IAS 24).","es":""},"common_error":{"fr":"","en":"Leaving a category out of the sum.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Short-term benefits","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Post-employment benefits","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Other long-term benefits","es":""},"value":"22000","unit":"EUR"},{"label":{"fr":"","en":"Termination benefits","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Share-based payment","es":""},"value":"52000","unit":"EUR"}],"steps":[{"id":"total","label":{"fr":"","en":"Total compensation","es":""},"answer":582000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"total","meaning":{"fr":"","en":"Total compensation","es":""},"expression":"a + b + c + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Short-term benefits","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-employment benefits","es":""},"value":38000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Other long-term benefits","es":""},"value":22000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Termination benefits","es":""},"value":60000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Share-based payment","es":""},"value":52000,"unit":"EUR"}],"result":582000,"unit":"EUR"}],"rationale":{"fr":"","en":"the total is the sum of the five categories (IAS 24).","es":""},"references":["REF.IAS24.17"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000050","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"KMP_TOTAL_TWO_YEARS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"numeric-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Key management compensation of Belmare SA. Year N: short-term €720,000, post-employment €64,000, other long-term €28,000, termination €0, shares €96,000. Year N-1: €690,000, €60,000, €28,000, €45,000, €80,000. Calculate the two totals and their change.","es":""},"explanation":{"fr":"","en":"N: 720,000 + 64,000 + 28,000 + 0 + 96,000 = €908,000; N-1: 690,000 + 60,000 + 28,000 + 45,000 + 80,000 = €903,000; change = €5,000. Rule to remember: each total is the sum of the five categories (IAS 24).","es":""},"common_error":{"fr":"","en":"Leaving out the zero category or that of the previous year in the sum.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Short-term N / N-1","es":""},"value":"720000 / 690000","unit":"EUR"},{"label":{"fr":"","en":"Post-employment N / N-1","es":""},"value":"64000 / 60000","unit":"EUR"},{"label":{"fr":"","en":"Other long-term N / N-1","es":""},"value":"28000 / 28000","unit":"EUR"},{"label":{"fr":"","en":"Termination N / N-1","es":""},"value":"0 / 45000","unit":"EUR"},{"label":{"fr":"","en":"Shares N / N-1","es":""},"value":"96000 / 80000","unit":"EUR"}],"steps":[{"id":"tn","label":{"fr":"","en":"Total for year N","es":""},"answer":908000,"tolerance":0,"unit":"EUR"},{"id":"tn1","label":{"fr":"","en":"Total for year N-1","es":""},"answer":903000,"tolerance":0,"unit":"EUR"},{"id":"var","label":{"fr":"","en":"Change (N − N-1)","es":""},"answer":5000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000051","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"COMPENSATION_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Match each item given to a key manager to the corresponding compensation category.","es":""},"explanation":{"fr":"","en":"Rule to remember: compensation is split among the five categories: short-term, post-employment, other long-term, termination, shares (IAS 24).","es":""},"common_error":{"fr":"","en":"Placing a severance payment in short-term benefits.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Annual bonus paid in March","es":""}},{"id":"l2","text":{"fr":"","en":"Contributions paid to a pension fund for the director","es":""}},{"id":"l3","text":{"fr":"","en":"Severance payment to the technical director","es":""}},{"id":"l4","text":{"fr":"","en":"Free shares granted to the chief executive","es":""}}],"right":[{"id":"r4","text":{"fr":"","en":"Share-based payment","es":""}},{"id":"r1","text":{"fr":"","en":"Short-term benefits","es":""}},{"id":"r2","text":{"fr":"","en":"Post-employment benefits","es":""}},{"id":"r3","text":{"fr":"","en":"Termination benefits","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000052","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION","IAS24.KMP.OTHER_TRANSACTIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"KMP_NOTE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17","IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in this draft note on key managers.","es":""},"explanation":{"fr":"","en":"Rule to remember: the five categories, including share-based payment, are disclosed; rents and loans are other transactions (IAS 24).","es":""},"common_error":{"fr":"","en":"Mixing other transactions into compensation and excluding non-cash payments.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Rent paid to a manager who owns premises is included in short-term benefits.","es":""},"erroneous":true,"correction":{"fr":"","en":"Rent is another transaction with the manager, to be disclosed under the general rules in the key management personnel category (IAS 24).","es":""}},{"id":"s2","text":{"fr":"","en":"The total compensation is the sum of the five categories.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"Share-based payment is excluded from the compensation disclosed, for lack of a cash outflow.","es":""},"erroneous":true,"correction":{"fr":"","en":"Share-based payment is one of the five categories to disclose (IAS 24).","es":""}},{"id":"s4","text":{"fr":"","en":"The note discloses key management personnel compensation in total and for each of the five categories.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000053","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.OTHER_TRANSACTIONS"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"GENERIC","tested_point":"KMP_VEHICLE_SALE_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-other"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"The sale by the entity of a used vehicle to one of its key managers is a transaction to be disclosed in the key management personnel category.","es":""},"explanation":{"fr":"","en":"Rule to remember: transactions with key managers other than compensation are disclosed under the general rules, in their category (IAS 24).","es":""},"common_error":{"fr":"","en":"Treating compensation as the only disclosure about managers.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000054","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"COMPENSATION_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Complete the rule on key management compensation.","es":""},"explanation":{"fr":"","en":"Rule to remember: key management compensation is disclosed in total and for each of five categories (IAS 24).","es":""},"common_error":{"fr":"","en":"Believing the disclosure is individualised per manager.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Key management personnel compensation is disclosed {{b1}} and for each of the {{b2}} categories.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"in total","es":""}},{"id":"c2","text":{"fr":"","en":"per named manager","es":""}},{"id":"c3","text":{"fr":"","en":"as an average per manager","es":""}}],"answer":"c1"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"four","es":""}},{"id":"c2","text":{"fr":"","en":"six","es":""}},{"id":"c3","text":{"fr":"","en":"five","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000055","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.MANAGEMENT_ENTITY_RELIEF"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SERVICES","tested_point":"MGMT_ENTITY_AMOUNT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-mgmt-relief"},"references":["IAS 24 §17A","IAS 24 §18A"],"exercise":{"prompt":{"fr":"","en":"Dalmore SA obtains the services of its two managers from the management company Eskor, for €840,000 for the year. Eskor pays these managers €610,000 of compensation. What amount does Dalmore disclose for these services?","es":""},"explanation":{"fr":"","en":"Rule to remember: for key management personnel services obtained from a management entity, one discloses the amounts incurred for those services (IAS 24, para. 17A) (IAS 24, para. 18A).","es":""},"common_error":{"fr":"","en":"Using the management entity's compensation or combining it with the amount invoiced.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€610,000, broken down into five key management compensation categories of Dalmore","es":""},"correct":false,"feedback":{"fr":"","en":"The entity does not apply the category disclosure to what the management entity pays its staff (IAS 24, para. 17A).","es":""}},{"id":"B","text":{"fr":"","en":"€840,000, the amount incurred for these services, and not the pay Eskor gives","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€1,450,000, the sum of the €840,000 invoiced and the €610,000 of compensation","es":""},"correct":false,"feedback":{"fr":"","en":"The two amounts are not added: it is the amount incurred with the management entity that is disclosed (IAS 24, para. 18A).","es":""}},{"id":"D","text":{"fr":"","en":"€230,000, the management entity's margin between invoicing and compensation","es":""},"correct":false,"feedback":{"fr":"","en":"The management entity's margin is not the information asked for; it is the amounts incurred for the services (IAS 24, para. 18A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000056","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IAS19","IAS24.INTERACTIONS.IFRS2","IAS24.KMP.COMPENSATION"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"KMP_MEASUREMENT_LINK","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-links"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"An entity's chief executive receives share options. What is IAS 24's role regarding the amount of this share-based payment?","es":""},"explanation":{"fr":"","en":"Rule to remember: IAS 24 breaks key management compensation down by category (IAS 24, para. 17); the measurement of share-based payments belongs to IFRS 2 and that of benefits to IAS 19.","es":""},"common_error":{"fr":"","en":"Looking in IAS 24 for measurement rules that belong to other standards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It sets the method for measuring the options, which varies with the manager's role","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 does not measure these amounts: it groups them by category (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"It excludes them from compensation, since they fall under another standard","es":""},"correct":false,"feedback":{"fr":"","en":"Share-based payment is one of the five categories of compensation to disclose (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"It places it in the share-based payment category; its measurement belongs to IFRS 2","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It places them in post-employment benefits, which fall under IAS 19","es":""},"correct":false,"feedback":{"fr":"","en":"Share-based payments form their own category, separate from post-employment benefits (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000057","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION","IAS24.KMP.MANAGEMENT_ENTITY_RELIEF","IAS24.RELATIONSHIPS.MANAGEMENT_ENTITY","IAS24.KMP.OTHER_TRANSACTIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"VIREO_MINI","difficulty":"EXPERT","estimated_time_s":270,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"judgment"},"references":["IAS 24 §17","IAS 24 §17A","IAS 24 §18A","IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Vireo SA key management file","es":""},"explanation":{"fr":"","en":"Rule to remember: one separates compensation by category (IAS 24), the amounts incurred with a management entity (IAS 24, para. 17A) (IAS 24, para. 18A) and other transactions with managers (IAS 24).","es":""},"common_error":{"fr":"","en":"Merging compensation, management entity services and rents into a single total.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Vireo SA employs three key managers. Their compensation for the year: short-term benefits €540,000, post-employment €48,000, other long-term €0, termination €0, share-based payment €72,000. It also obtains the services of its technical director from the management company Plexor, for €190,000 for the year. Vireo SA's chairman also rented it a warehouse for €60,000 for the year.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the total compensation of Vireo SA's three employed managers.","es":""},"explanation":{"fr":"","en":"540,000 + 48,000 + 0 + 0 + 72,000 = €660,000. Rule to remember: the total is the sum of the five categories (IAS 24).","es":""},"common_error":{"fr":"","en":"Leaving share-based payments out of the total: key management compensation adds up all categories.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Short-term","es":""},"value":"540000","unit":"EUR"},{"label":{"fr":"","en":"Post-employment","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Shares","es":""},"value":"72000","unit":"EUR"}],"steps":[{"id":"total","label":{"fr":"","en":"Total","es":""},"answer":660000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What information does Vireo SA give for the services of its technical director supplied by Plexor?","es":""},"explanation":{"fr":"","en":"Rule to remember: for services obtained from a management entity, one discloses the amounts incurred (IAS 24, para. 17A) (IAS 24, para. 18A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The €190,000 incurred for these services, Plexor being a related party","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The €190,000 added to the €660,000 in the total of the five categories","es":""},"correct":false,"feedback":{"fr":"","en":"The amount incurred with the management entity is disclosed apart from the total of the categories (IAS 24, para. 18A).","es":""}},{"id":"C","text":{"fr":"","en":"The pay Plexor gives its director, by category","es":""},"correct":false,"feedback":{"fr":"","en":"The entity need not apply the category disclosure to what the management entity pays its staff (IAS 24, para. 17A).","es":""}},{"id":"D","text":{"fr":"","en":"No information, Plexor invoicing its services to Vireo SA at market price","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship with the management entity is a related party relationship, whatever the price (IAS 24, para. 9) (IAS 24, para. 18A).","es":""}}],"id":"p2","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"Where does Vireo SA disclose the €60,000 rent paid to the chairman for the warehouse?","es":""},"explanation":{"fr":"","en":"Rule to remember: transactions with managers other than compensation are disclosed in the key management personnel category (IAS 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In managers' short-term benefits, with the €540,000","es":""},"correct":false,"feedback":{"fr":"","en":"Rent does not pay for the manager's work: it follows the rules for other transactions (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Nowhere, because rent is an ordinary expense unrelated to management","es":""},"correct":false,"feedback":{"fr":"","en":"Rent paid to a related party remains a related party transaction to disclose (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"In the \"other related parties\" category, because rent is not manager compensation","es":""},"correct":false,"feedback":{"fr":"","en":"The chairman is key management personnel: his transaction goes in that category (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Among the related party transactions, in the key management personnel category","es":""},"correct":true}],"id":"p3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000058","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CONTENT"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONTENT_LOAN_TO_MANAGER","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-content"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"A note discloses only the closing amount of a loan granted by the entity to a key manager. What must at least be added about this balance?","es":""},"explanation":{"fr":"","en":"Rule to remember: balances are disclosed with their terms and conditions, including security, and details of guarantees given or received (IAS 24).","es":""},"common_error":{"fr":"","en":"Stopping at the balance amount without its terms.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The estimated market value of the loan, calculated by the entity at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The minimum content includes terms and guarantees, not an estimated market value (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"The personal financial position of the borrowing manager","es":""},"correct":false,"feedback":{"fr":"","en":"The manager's personal situation is not part of the minimum content for balances (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"The average interest rate charged by banks on comparable loans","es":""},"correct":false,"feedback":{"fr":"","en":"A reference market rate is not part of the minimum disclosure on the balance (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Its terms and conditions, including security, and details of guarantees","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000059","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"NET_BALANCE_SIMPLE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"numeric-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"An entity has a gross receivable of €240,000 from its parent. The allowance built up is €36,000. Calculate the net balance of the receivable.","es":""},"explanation":{"fr":"","en":"240,000 − 36,000 = €204,000. Rule to remember: the net balance is the gross balance less the allowance (IAS 24).","es":""},"common_error":{"fr":"","en":"Taking the allowance as the net balance.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross balance","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Allowance","es":""},"value":"36000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net balance","es":""},"answer":204000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net balance","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross balance","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Allowance","es":""},"value":36000,"unit":"EUR"}],"result":204000,"unit":"EUR"}],"rationale":{"fr":"","en":"the net balance is the gross balance less the allowance (IAS 24).","es":""},"references":["REF.IAS24.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000060","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"ALLOWANCE_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"numeric-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Case convention: the expense for the period is the year's charge, and receivables written off are charged against the allowance. An entity has an opening allowance of €28,000 on receivables from its subsidiary, €9,000 written off in the year and a closing allowance of €46,000. Calculate the expense for the period.","es":""},"explanation":{"fr":"","en":"Expense = closing − opening + write-offs = 46,000 − 28,000 + 9,000 = €27,000. Rule to remember: this formula is the case convention, the standard requiring disclosure of the period's expense (IAS 24).","es":""},"common_error":{"fr":"","en":"Forgetting to add write-offs to the movement in the allowance.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening allowance","es":""},"value":"28000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Closing allowance","es":""},"value":"46000","unit":"EUR"}],"steps":[{"id":"charge","label":{"fr":"","en":"Expense for the period","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"charge","meaning":{"fr":"","en":"Expense for the period","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing allowance","es":""},"value":46000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening allowance","es":""},"value":28000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs","es":""},"value":9000,"unit":"EUR"}],"result":27000,"unit":"EUR"}],"rationale":{"fr":"","en":"this formula is the case convention, the standard requiring disclosure of the period's expense (IAS 24).","es":""},"references":["REF.IAS24.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000061","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES","IAS24.TRANSACTIONS.CATEGORIES"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"ASSOCIATE_RECEIVABLE_3STEPS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"numeric-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Case convention: the expense for the period is the year's charge, and receivables written off are charged against the allowance. An entity has a gross receivable of €360,000 from an associate. Opening allowance: €50,000; write-offs: €12,000; closing allowance: €64,000. Calculate the expense for the period, the net balance at the reporting date, and check the closing allowance through the movement (opening + expense − write-offs).","es":""},"explanation":{"fr":"","en":"Expense = 64,000 − 50,000 + 12,000 = €26,000; net balance = 360,000 − 64,000 = €296,000; check: 50,000 + 26,000 − 12,000 = €64,000. Rule to remember: disclosure covers allowances and the period's expense, shown for the associates category (IAS 24).","es":""},"common_error":{"fr":"","en":"Forgetting write-offs in the check of the closing allowance.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross balance","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Opening allowance","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Closing allowance","es":""},"value":"64000","unit":"EUR"}],"steps":[{"id":"charge","label":{"fr":"","en":"Expense for the period","es":""},"answer":26000,"tolerance":0,"unit":"EUR"},{"id":"net","label":{"fr":"","en":"Net balance at the reporting date","es":""},"answer":296000,"tolerance":0,"unit":"EUR"},{"id":"check","label":{"fr":"","en":"Recomputed closing allowance","es":""},"answer":64000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"charge","meaning":{"fr":"","en":"Expense for the period","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing allowance","es":""},"value":64000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening allowance","es":""},"value":50000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs","es":""},"value":12000,"unit":"EUR"}],"result":26000,"unit":"EUR"},{"step":"net","meaning":{"fr":"","en":"Net balance at the reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross balance","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing allowance","es":""},"value":64000,"unit":"EUR"}],"result":296000,"unit":"EUR"},{"step":"check","meaning":{"fr":"","en":"Recomputed closing allowance","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening allowance","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expense for the period","es":""},"value":26000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs","es":""},"value":12000,"unit":"EUR"}],"result":64000,"unit":"EUR"}],"rationale":{"fr":"","en":"disclosure covers allowances and the period's expense, shown for the associates category (IAS 24).","es":""},"references":["REF.IAS24.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000062","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CONTENT","IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CONTENT_NOTE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-content"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in this draft related party note.","es":""},"explanation":{"fr":"","en":"Rule to remember: the minimum content includes amounts, balances with terms and guarantees, allowances and the period's expense (IAS 24).","es":""},"common_error":{"fr":"","en":"Leaving guarantees or the period's expense out of the note.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The note does not mention guarantees given to a related party, because they are not transactions.","es":""},"erroneous":true,"correction":{"fr":"","en":"Guarantees given or received, and guarantees in the list of examples, are to be disclosed (IAS 24).","es":""}},{"id":"s2","text":{"fr":"","en":"The note discloses the allowances for doubtful debts related to the balances.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The period's expense on doubtful debts is omitted, since the allowance is already in the note.","es":""},"erroneous":true,"correction":{"fr":"","en":"The expense recognised for the period is a separate item of the minimum content (IAS 24).","es":""}},{"id":"s4","text":{"fr":"","en":"The note discloses the amount of the period's transactions with each related party category.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000063","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CATEGORIES"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"CATEGORY_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-categories"},"references":["IAS 24 §19"],"exercise":{"prompt":{"fr":"","en":"Match each of the entity's transactions to the related party category in which it is presented.","es":""},"explanation":{"fr":"","en":"Rule to remember: information is given separately for the parent, subsidiaries, associates, joint ventures, key management personnel and other related parties (IAS 24).","es":""},"common_error":{"fr":"","en":"Mixing the parent and the subsidiaries in one category.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"A loan granted to a company it controls","es":""}},{"id":"l2","text":{"fr":"","en":"Purchases of services from a company over which it has significant influence","es":""}},{"id":"l3","text":{"fr":"","en":"An advance granted to its chief executive","es":""}},{"id":"l4","text":{"fr":"","en":"Sales of goods to the company that controls it","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Key management personnel","es":""}},{"id":"r4","text":{"fr":"","en":"The parent","es":""}},{"id":"r1","text":{"fr":"","en":"Subsidiaries","es":""}},{"id":"r2","text":{"fr":"","en":"Associates","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000064","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.EXAMPLES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"TRANSACTION_FAMILIES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-examples"},"references":["IAS 24 §21"],"exercise":{"prompt":{"fr":"","en":"Classify these related party transactions in the corresponding family of examples.","es":""},"explanation":{"fr":"","en":"Rule to remember: goods, services, finance, guarantees and commitments contingent on future events are examples of transactions to disclose (IAS 24).","es":""},"common_error":{"fr":"","en":"Limiting the examples to purchases and sales of goods.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Finance","es":""}},{"id":"c2","text":{"fr":"","en":"Goods and services","es":""}},{"id":"c3","text":{"fr":"","en":"Guarantees and commitments","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A loan granted to a subsidiary","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"An equity contribution received from the parent","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"The purchase of goods from a fellow subsidiary","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Consulting services received from a director's company","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"A guarantee given to a bank for a joint venture's borrowing","es":""},"category":"c3"},{"id":"i6","text":{"fr":"","en":"A purchase commitment that depends on a future event, with an associate","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000065","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.EXAMPLES","IAS24.TRANSACTIONS.CONTENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"GUARANTEE_JV","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-examples"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"An entity guarantees its joint venture's borrowing with a bank. No cash has been paid out. Must this guarantee appear in the related party note?","es":""},"explanation":{"fr":"","en":"Rule to remember: guarantees and collateral given or received are examples of transactions to disclose (IAS 24).","es":""},"common_error":{"fr":"","en":"Retaining only transactions that gave rise to a cash outflow.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because the guarantee is a contingent commitment with no cash outflow","es":""},"correct":false,"feedback":{"fr":"","en":"Guarantees and commitments contingent on future events are among the examples to disclose (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: guarantees are examples of transactions to disclose, with their details","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No, because a joint venture is not a related party category for this disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"Joint ventures in which the entity is a venturer form one of the categories (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, if the bank has already called the guarantee","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure does not depend on the guarantee being called (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000066","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CONTENT","IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CONTENT_MC","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-content"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Which items are part of the minimum content of the disclosure on balances with a related party?","es":""},"explanation":{"fr":"","en":"Rule to remember: the minimum content on balances includes their amount, including commitments, their terms, guarantees and allowances for doubtful debts (IAS 24).","es":""},"common_error":{"fr":"","en":"Adding market or rating information that is not in the minimum content.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the balance, including commitments","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The related party's expected return on the funds received","es":""},"correct":false,"feedback":{"fr":"","en":"The counterparty's return is not in the minimum content of the balance (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Allowances for doubtful debts related to the balance","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The related party's credit rating assigned by an agency","es":""},"correct":false,"feedback":{"fr":"","en":"An external rating is not part of the minimum content (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000067","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"NET_BALANCE_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS24.000008","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"numeric-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Complete the formula for the net balance of a receivable from a related party.","es":""},"explanation":{"fr":"","en":"Rule to remember: net balance = gross balance − allowance (IAS 24).","es":""},"common_error":{"fr":"","en":"Deducting the period's expense or a guarantee instead of the allowance.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The net balance of a receivable equals the {{b1}} balance less the {{b2}} built up.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"gross","es":""}},{"id":"c2","text":{"fr":"","en":"opening","es":""}},{"id":"c3","text":{"fr":"","en":"average","es":""}}],"answer":"c1"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"period's expense","es":""}},{"id":"c2","text":{"fr":"","en":"guarantee received","es":""}},{"id":"c3","text":{"fr":"","en":"allowance","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000068","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ARMS_LENGTH"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ARMS_LENGTH_NO_EVIDENCE_TF","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-arms"},"references":["IAS 24 §23"],"exercise":{"prompt":{"fr":"","en":"An entity with no evidence that its prices with its subsidiary are market prices may still write so in its note.","es":""},"explanation":{"fr":"","en":"Rule to remember: the arm's length statement is made only if the terms can be substantiated (IAS 24).","es":""},"common_error":{"fr":"","en":"Asserting arm's length terms out of habit without a file of evidence.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000069","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ARMS_LENGTH"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"ARMS_LENGTH_WITH_EVIDENCE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-arms"},"references":["IAS 24 §23"],"exercise":{"prompt":{"fr":"","en":"The management of Pertan SA wants to write that its purchases from a fellow subsidiary are on arm's length terms. It compared the prices with three offers from independent suppliers for identical goods, the comparisons being kept on file. What may it do?","es":""},"explanation":{"fr":"","en":"Rule to remember: an arm's length statement is not required; it may be made if its terms can be substantiated (IAS 24). Here, the value of the comparisons kept is a judgement of management on the file: the standard imposes neither a method nor a form of evidence.","es":""},"common_error":{"fr":"","en":"Seeing in the standard a prohibition or a free pass for this statement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep the statement, if it judges that the comparisons kept make it possible to substantiate the terms","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Delete the statement, the standard forbidding it for transactions with a fellow subsidiary","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not forbid the statement: it allows it where the terms can be substantiated (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Keep the statement but remove the comparisons from the file, the standard not requiring evidence","es":""},"correct":false,"feedback":{"fr":"","en":"The statement is made only if it can be substantiated: the evidence must be producible (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Delete the statement, because an arm's length transaction is a transaction with a third party","es":""},"correct":false,"feedback":{"fr":"","en":"The standard concerns precisely transactions with related parties whose terms may be arm's length if substantiated (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000070","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ARMS_LENGTH"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"ARMS_LENGTH_NOTE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-arms"},"references":["IAS 24 §23"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in this draft note.","es":""},"explanation":{"fr":"","en":"Rule to remember: the arm's length statement is not required and is made only if it can be substantiated (IAS 24).","es":""},"common_error":{"fr":"","en":"Making the statement mandatory or making it without evidence.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The amounts and terms of transactions are disclosed, whether or not an arm's length statement is made.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The standard obliges the entity to state that its transactions are on arm's length terms.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard does not require this statement (IAS 24).","es":""}},{"id":"s3","text":{"fr":"","en":"The arm's length statement is made only if those terms can be substantiated.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The note states that sales to the parent are on arm's length terms, with nothing to substantiate it.","es":""},"erroneous":true,"correction":{"fr":"","en":"This statement is made only if the terms can be substantiated (IAS 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000071","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.AGGREGATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"AGGREGATE_VS_SEPARATE","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-aggregation"},"references":["IAS 24 §24"],"exercise":{"prompt":{"fr":"","en":"An entity entered into a hundred small transactions of the same nature (office supplies) with its subsidiary and, during the year, an exceptional sale of a building to that same subsidiary. How should these items be presented?","es":""},"explanation":{"fr":"","en":"Rule to remember: items of a similar nature may be aggregated, except when separate disclosure is necessary to understand the effects (IAS 24).","es":""},"common_error":{"fr":"","en":"Aggregating regardless of nature or effect, or refusing any aggregation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Group the hundred transactions and the sale in a single total, the nature of the items being immaterial here","es":""},"correct":false,"feedback":{"fr":"","en":"Aggregation concerns items of a similar nature; separate disclosure is necessary where it helps understand the effects (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Present each supply separately, aggregation being forbidden for related parties","es":""},"correct":false,"feedback":{"fr":"","en":"Items of a similar nature may be aggregated (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Aggregate what is below the materiality threshold set by the standard and present the rest","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold: it is a judgement on the usefulness of separate disclosure (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Aggregate the supplies, of the same nature, and present the sale separately if that helps understanding","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000072","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.AGGREGATION","IAS24.TRANSACTIONS.CATEGORIES"],"dimension":"CALCULATION","format":"CALCULATION","context":"SERVICES","tested_point":"CATEGORY_TOTAL_SIMILAR","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-aggregation"},"references":["IAS 24 §24"],"exercise":{"prompt":{"fr":"","en":"An entity received from its associates four services of the same nature invoiced at €120,000, €85,000, €64,000 and €31,000. It also bought a machine for €200,000 from one of them. It decides to aggregate the services (judgement: items of a similar nature) and to present the machine separately. Calculate the aggregated amount of the services to disclose for the associates category.","es":""},"explanation":{"fr":"","en":"120,000 + 85,000 + 64,000 + 31,000 = €300,000; the machine (€200,000), of a different nature, is not part of the aggregate. Rule to remember: items of a similar nature may be aggregated; the choice is a judgement, with no imposed threshold (IAS 24).","es":""},"common_error":{"fr":"","en":"Adding items of a different nature under the pretext of aggregation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Service 1","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Service 2","es":""},"value":"85000","unit":"EUR"},{"label":{"fr":"","en":"Service 3","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Service 4","es":""},"value":"31000","unit":"EUR"},{"label":{"fr":"","en":"Purchase of a machine (different nature)","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"agg","label":{"fr":"","en":"Aggregated amount","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"agg","meaning":{"fr":"","en":"Aggregated amount","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Service 1","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Service 2","es":""},"value":85000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Service 3","es":""},"value":64000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Service 4","es":""},"value":31000,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"items of a similar nature may be aggregated; the choice is a judgement, with no imposed threshold (IAS 24).","es":""},"references":["REF.IAS24.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000073","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ARMS_LENGTH","IAS24.TRANSACTIONS.AGGREGATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"QUIRANE_MINI","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS24.000009","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"judgment"},"references":["IAS 24 §23"],"exercise":{"prompt":{"fr":"","en":"Quirane SA draft note","es":""},"explanation":{"fr":"","en":"Rule to remember: the unsubstantiated statement is withdrawn and only what is of a similar nature is aggregated, with no imposed threshold (IAS 24).","es":""},"common_error":{"fr":"","en":"Generalising the arm's length statement or aggregation to items that do not suit them.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Quirane SA's draft note says: \"All transactions with related parties, sales of goods to the subsidiary as well as the loan to the joint venture, were made on arm's length terms.\" The file contains a price comparison for the sales of goods to the subsidiary, but none for the loan to the joint venture. The note also groups in a single line \"purchases from related parties\" purchases of supplies (numerous, of the same nature) and the acquisition of a machine from the parent.","es":""},"parts":[{"prompt":{"fr":"","en":"What should be done about the arm's length statement as regards the loan to the joint venture?","es":""},"explanation":{"fr":"","en":"Rule to remember: the arm's length statement is made only for terms that can be substantiated (IAS 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep it for the loan, since it is substantiated for the sales of goods","es":""},"correct":false,"feedback":{"fr":"","en":"The statement must be substantiated for the transactions it covers; the evidence on sales does not cover the loan (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Withdraw it for the loan, nothing substantiating it, while still disclosing its amounts and terms","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep it, the standard obliging the entity to assert arm's length terms for the whole set of related party transactions","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not impose this statement (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Also delete the information on the loan, for lack of arm's length evidence","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts and terms remain to be disclosed; only the statement is withdrawn (IAS 24).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"How should the single line \"purchases from related parties\" be treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: items of a similar nature may be aggregated, unless separate disclosure is necessary (IAS 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep the single line, aggregation being permitted for related parties as long as the total is accurate","es":""},"correct":false,"feedback":{"fr":"","en":"Aggregation has a limit: separate disclosure needed to understand the effects (IAS 24).","es":""}},{"id":"B","text":{"fr":"","en":"Separate each supply, aggregation being excluded for related parties as soon as they are numerous","es":""},"correct":false,"feedback":{"fr":"","en":"Items of a similar nature may be aggregated (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Remove the acquisition of the machine from the note because it is a one-off and does not recur from one year to the next","es":""},"correct":false,"feedback":{"fr":"","en":"A one-off transaction with a related party remains to be disclosed; it may justify separate presentation (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Aggregate the supplies of the same nature and separate the machine if that helps understand the effect","es":""},"correct":true}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"On the facts of the case, and with no method of evidence imposed by the standard, which document can the professional rely on to substantiate the arm's length statement on the sales of goods?","es":""},"explanation":{"fr":"","en":"Rule to remember: the arm's length statement rests on evidence showing that the terms can be substantiated (IAS 24); the choice of document is here a matter of judgement on the file.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The comparison of prices with those of independent customers, which makes it possible to judge the terms","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A letter from the subsidiary confirming it is satisfied with the prices applied to it","es":""},"correct":false,"feedback":{"fr":"","en":"On the facts of the case, a related party's satisfaction does not compare the terms with those of independent third parties (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"The board of directors' minutes approving the prices charged to the subsidiary","es":""},"correct":false,"feedback":{"fr":"","en":"On the facts of the case, an internal approval does not compare the terms with those of independent parties (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"The subsidiary's average margin on the goods resold","es":""},"correct":false,"feedback":{"fr":"","en":"On the facts of the case, the subsidiary's margin does not compare the terms with those of independent third parties (IAS 24).","es":""}}],"id":"p3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000074","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"EXEMPTION_SALES_TO_STATE","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-exemption"},"references":["IAS 24 §25","IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government sells it services. How should these sales be treated for related party disclosure?","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption relieves detailed disclosure of transactions with the government that controls the entity, some disclosure being retained (IAS 24, para. 25) (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Treating these sales like ordinary related party transactions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are detailed like an ordinary related party transaction, with no exemption possible","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption exists for transactions with the government that controls the entity (IAS 24, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"They are exempt if their amount is small relative to total sales","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption does not depend on the amount; the amount serves for the indication of extent (IAS 24, para. 25) (IAS 24, para. 26).","es":""}},{"id":"C","text":{"fr":"","en":"They fall within the exemption from detailed disclosure, with minimum disclosure retained","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are excluded from the note, the government not being an individual","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure is retained: name of the government, nature of the relationship and extent of the transactions (IAS 24, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000075","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"STATE_NAME_TF","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"An entity that applies the exemption still discloses the name of the government and the nature of its relationship with it.","es":""},"explanation":{"fr":"","en":"Rule to remember: with the exemption, the entity discloses the name of the government and the nature of its relationship (control, joint control or significant influence) (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Believing that the exemption also removes the government's name.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000076","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"SHARE_OF_SALES","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"numeric-share"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government made €2,450,000 of sales with that government and its related entities, out of total sales of €7,000,000. Calculate the share of sales made with the government and its related entities, for the indication of extent.","es":""},"explanation":{"fr":"","en":"2,450,000 / 7,000,000 = 35%. Rule to remember: the indication of extent may be the proportion of sales; this percentage is an illustration, with no imposed threshold (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Dividing the total by the share made with the government.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Sales with the government and its related entities","es":""},"value":"2450000","unit":"EUR"},{"label":{"fr":"","en":"Total sales","es":""},"value":"7000000","unit":"EUR"}],"steps":[{"id":"share","label":{"fr":"","en":"Share of sales","es":""},"answer":35,"tolerance":0,"unit":"%"}],"formula":{"lines":[{"step":"share","meaning":{"fr":"","en":"Share of sales","es":""},"expression":"(a / b) * 100","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales with the government and its related entities","es":""},"value":2450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total sales","es":""},"value":7000000,"unit":"EUR"}],"result":35,"unit":"%"}],"rationale":{"fr":"","en":"the indication of extent may be the proportion of sales; this percentage is an illustration, with no imposed threshold (IAS 24, para. 26).","es":""},"references":["REF.IAS24.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000077","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"SHARE_PURCHASES_SALES","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"numeric-share"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government bought €1,920,000 from that government and its related entities, out of total purchases of €4,800,000, and sold it €1,330,000 out of total sales of €5,320,000. Calculate the share of purchases and the share of sales.","es":""},"explanation":{"fr":"","en":"Purchases: 1,920,000 / 4,800,000 = 40%; sales: 1,330,000 / 5,320,000 = 25%. Rule to remember: the indication of extent may cover the proportion of sales and purchases, with no imposed threshold (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Mixing the denominators of purchases and sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Purchases with the government and its entities / total","es":""},"value":"1920000 / 4800000","unit":"EUR"},{"label":{"fr":"","en":"Sales with the government and its entities / total","es":""},"value":"1330000 / 5320000","unit":"EUR"}],"steps":[{"id":"pa","label":{"fr":"","en":"Share of purchases","es":""},"answer":40,"tolerance":0,"unit":"%"},{"id":"pv","label":{"fr":"","en":"Share of sales","es":""},"answer":25,"tolerance":0,"unit":"%"}],"formula":{"lines":[{"step":"pa","meaning":{"fr":"","en":"Share of purchases","es":""},"expression":"(a / b) * 100","variables":[{"symbol":"a","meaning":{"fr":"","en":"An entity controlled by a government bought €1,920,000","es":""},"value":1920000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"from that government and its related entities, out of total purchases of €4,800,000","es":""},"value":4800000,"unit":"EUR"}],"result":40,"unit":"%"}],"rationale":{"fr":"","en":"the indication of extent may cover the proportion of sales and purchases, with no imposed threshold (IAS 24, para. 26).","es":""},"references":["REF.IAS24.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000078","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION","IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"EXEMPTION_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-exemption"},"references":["IAS 24 §25","IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"For an entity controlled by a government, classify each counterparty according to whether its transactions fall within the exemption or not.","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption covers the government and entities related through the same government; it does not extend to individuals (IAS 24, para. 25).","es":""},"common_error":{"fr":"","en":"Extending the exemption to managers or to any related party.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Within the exemption: detail not required (IAS 24, para. 18)","es":""}},{"id":"c2","text":{"fr":"","en":"Disclosure maintained (IAS 24, para. 18)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The government that controls the entity","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"A railway company controlled by that same government","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"A public bank controlled by that same government","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The entity's chief executive, an individual","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"The chief executive's spouse","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"An associate of the entity, owned by a private group","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000079","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES","IAS24.GOVERNMENT.EXEMPTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"GOV_NOTE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §25","IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in this draft note of an entity controlled by a government.","es":""},"explanation":{"fr":"","en":"Rule to remember: with the exemption, one discloses the government's name, the relationship, individually significant transactions and a qualitative or quantitative indication of the extent of the others (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Seeing the exemption as total relief or imposing a percentage.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The nature and amount of each individually significant transaction are disclosed.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The extent of the other transactions must always be given as a numeric percentage.","es":""},"erroneous":true,"correction":{"fr":"","en":"The indication may be qualitative or quantitative (IAS 24, para. 26).","es":""}},{"id":"s3","text":{"fr":"","en":"The note discloses the name of the government and the nature of its relationship with the entity.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The exemption relieves the entity of any disclosure about its transactions with the government.","es":""},"erroneous":true,"correction":{"fr":"","en":"Disclosure is retained: government name, relationship, significant transactions (IAS 24, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000080","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"GOV_DISCLOSURE_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"Complete the disclosure to keep where the exemption applies.","es":""},"explanation":{"fr":"","en":"Rule to remember: the entity discloses the name of the government and the nature of its relationship (control, joint control or significant influence) (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Naming an actor other than the government or describing the duration of the relationship.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The entity discloses the name of the {{b1}} and the {{b2}} of its relationship with it.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"largest public entity","es":""}},{"id":"c2","text":{"fr":"","en":"government","es":""}},{"id":"c3","text":{"fr":"","en":"tax authority","es":""}}],"answer":"c2"},{"id":"b2","mode":"CHOICE","choices":[{"id":"c1","text":{"fr":"","en":"duration","es":""}},{"id":"c2","text":{"fr":"","en":"profitability","es":""}},{"id":"c3","text":{"fr":"","en":"nature","es":""}}],"answer":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000081","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION_LIMITS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"LIMITS_LOAN_TO_MANAGER","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-limits"},"references":["IAS 24 §25"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government lent €300,000 to one of its key managers. Does the government-related entities exemption cover this transaction?","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption does not extend to individuals: the transaction with a key manager remains to be disclosed (IAS 24, para. 25).","es":""},"common_error":{"fr":"","en":"Considering that the exemption covers all related parties of a government-related entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity being related to the government, its related party transactions are exempt","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is targeted at the government and entities related through it; it does not cover everything (IAS 24, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"The exemption does not extend to individuals, the loan remains to be disclosed","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of the loan, small relative to the balance sheet total, brings it within the exemption","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption does not depend on an amount; the nature of the counterparty decides (IAS 24, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"The manager being himself appointed by the government that controls the entity, the loan is covered","es":""},"correct":false,"feedback":{"fr":"","en":"How the manager was appointed does not change the status of individual, which the exemption does not cover (IAS 24, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000082","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.JUDGEMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"GOV_EXTENT_JUDGEMENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-judgement"},"references":["IAS 24 §27"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government must decide on the extent of disclosure of its transactions with that government and its related entities. Which approach matches the standard?","es":""},"explanation":{"fr":"","en":"To remember: the extent of disclosure on government-related entities is a reasoned professional judgement; the standard requires the closeness of the relationship and the significance of the transactions to be considered (IAS 24, paras. 26 and 27).","es":""},"common_error":{"fr":"","en":"Looking for a threshold or a uniform template instead of exercising a reasoned judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assess the extent through a reasoned and documented professional judgement, considering the closeness of the relationship and the significance of the transactions","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Apply an amount threshold set by the standard, below which transactions are no longer described individually","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold: the extent is a matter of judgement (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"Copy the disclosure of another entity of the same government, to standardise","es":""},"correct":false,"feedback":{"fr":"","en":"The extent depends on the entity's own relationship and transactions, not on a uniform template (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Limit oneself to the nature of the transactions, without their importance, as a precaution","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires the significance of the transactions (size, terms, nature) to be considered when setting the level of detail; leaving it out does not meet the requirement (IAS 24, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000083","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION","IAS24.GOVERNMENT.EXEMPTION_LIMITS","IAS24.GOVERNMENT.DISCLOSURES","IAS24.GOVERNMENT.JUDGEMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"JORVANE_MINI","difficulty":"EXPERT","estimated_time_s":270,"lesson_id":"LS.IAS24.000010","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"judgment"},"references":["IAS 24 §25","IAS 24 §26","IAS 24 §27"],"exercise":{"prompt":{"fr":"","en":"Jorvane SA exemption file","es":""},"explanation":{"fr":"","en":"Rule to remember: with the exemption, individuals are isolated (IAS 24, para. 25), individually significant transactions are described and the others summarised by an indication of extent (IAS 24, para. 26), with the judgement reasoned on the closeness of the relationship and the significance of the transactions (IAS 24, para. 27).","es":""},"common_error":{"fr":"","en":"Applying the exemption to everything or detailing no transaction.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Jorvane SA is controlled by the State of Kelvar (a fictitious entity) and applies the exemption. Sales for the year: €12,000,000, of which €3,000,000 were made with the State of Kelvar and the entities it controls. This €3,000,000 includes the sale of land for €1,800,000 to the State's land agency, an exceptional transaction. Jorvane SA also granted a loan of €250,000 to its finance director.","es":""},"parts":[{"prompt":{"fr":"","en":"Does the €250,000 loan to the finance director fall within the exemption?","es":""},"explanation":{"fr":"","en":"Rule to remember: the exemption does not extend to individuals (IAS 24, para. 25).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because Jorvane SA is controlled by the government and its related parties are exempt without distinction","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption targets the government and entities related through it, not individuals (IAS 24, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because the loan is small relative to the year's sales","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption does not depend on an amount (IAS 24, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"No, because it does not concern sales or purchases","es":""},"correct":false,"feedback":{"fr":"","en":"The reason is not the nature of the transaction but the counterparty being an individual (IAS 24, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"No: he is an individual, and the transaction with a key manager remains to be disclosed","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the share of sales made with the State of Kelvar and its related entities, then the share of sales other than the land sale.","es":""},"explanation":{"fr":"","en":"3,000,000 / 12,000,000 = 25%; (3,000,000 − 1,800,000) / 12,000,000 = 10%. Rule to remember: the indication of extent may be the proportion of sales, with no imposed threshold (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Thinking a numeric threshold of extent is required: the proportion of sales is one possible indication, with no threshold.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Sales with the State and its entities","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Of which land sale","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Total sales","es":""},"value":"12000000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of sales with the State and its entities","es":""},"answer":25,"tolerance":0,"unit":"%"},{"id":"s2","label":{"fr":"","en":"Share excluding the land sale","es":""},"answer":10,"tolerance":0,"unit":"%"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Share of sales with the State and its entities","es":""},"expression":"(a / b) * 100","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales with the State and its entities","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total sales","es":""},"value":12000000,"unit":"EUR"}],"result":25,"unit":"%"},{"step":"s2","meaning":{"fr":"","en":"Share excluding the land sale","es":""},"expression":"((a - b) / c) * 100","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales with the State and its entities","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Of which land sale","es":""},"value":1800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Total sales","es":""},"value":12000000,"unit":"EUR"}],"result":10,"unit":"%"}],"rationale":{"fr":"","en":"the indication of extent may be the proportion of sales, with no imposed threshold (IAS 24, para. 26).","es":""},"references":["REF.IAS24.26"]}},{"prompt":{"fr":"","en":"How should the €1,800,000 sale of land to the State's land agency, an exceptional transaction, be presented?","es":""},"explanation":{"fr":"","en":"Rule to remember: each individually significant transaction is described by its nature and amount and the others are summarised by an indication of extent, (IAS 24, para. 26); the level of detail retained is a matter of professional judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the overall indication of extent, because the whole relates to the government","es":""},"correct":false,"feedback":{"fr":"","en":"An individually significant transaction is described by its nature and amount (IAS 24, para. 26).","es":""}},{"id":"B","text":{"fr":"","en":"As an individually significant transaction (nature and amount), the other sales being summarised","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Not at all, the land agency being a government entity relieved of disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is partial: the retained disclosure covers notably individually significant transactions (IAS 24, para. 26).","es":""}},{"id":"D","text":{"fr":"","en":"As a transaction with an individual, because the land is an exceptional asset for the company","es":""},"correct":false,"feedback":{"fr":"","en":"The land agency is an entity related through the government, not an individual (IAS 24, para. 25).","es":""}}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000084","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.OBJECTIVE","IAS24.SCOPE.APPLICATION","IAS24.SCOPE.INTRAGROUP"],"dimension":"APPLICATION","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"SCOPE_GROUP_MINI","difficulty":"INTERMEDIATE","estimated_time_s":270,"lesson_id":"LS.IAS24.000001","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-intragroup"},"references":["IAS 24 §1","IAS 24 §3","IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"Determine where the transactions between Orsalis and its subsidiary are disclosed under IAS 24.","es":""},"explanation":{"fr":"","en":"Summary: the transactions between Orsalis and Tellane are disclosed in Tellane's own accounts and in Orsalis's separate accounts (IAS 24, paras. 3 and 4), and eliminated in the consolidated accounts (IAS 24, para. 4); their disclosure signals to the reader the possible influence of the relationship, here sales without margin (IAS 24, para. 1).","es":""},"common_error":{"fr":"","en":"Believing that the elimination of intragroup transactions on consolidation also relieves each group company from disclosing them in its own accounts.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Orsalis SA, an office furniture maker (a fictitious entity), owns 100% of Tellane SAS, its distributor. In N, Orsalis sold furniture to Tellane for 500,000, at production cost, whereas it applies a 30% margin to external customers; at 31 December N, Tellane still owes 120,000 to Orsalis (case data). Orsalis prepares consolidated financial statements and its own separate financial statements under IAS 27; Tellane prepares its own financial statements. Neither is an investment entity.","es":""},"parts":[{"prompt":{"fr":"","en":"What do Orsalis's consolidated financial statements show for the sales to Tellane and the 120,000 receivable?","es":""},"explanation":{"fr":"","en":"When consolidated financial statements are prepared, intragroup related party transactions and balances are eliminated, except between an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24, para. 4). As neither Orsalis nor Tellane is an investment entity, nothing appears for these transactions in the consolidated accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing as related party items: these intragroup transactions and balances are eliminated on consolidation","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 500,000 of sales and the 120,000 receivable, in the related party note","es":""},"correct":false,"feedback":{"fr":"","en":"In the consolidated statements, intragroup related party transactions and balances are eliminated (IAS 24, para. 4): the group does not sell to itself.","es":""}},{"id":"C","text":{"fr":"","en":"Only the 120,000 receivable, because a balance remains outstanding at the closing date","es":""},"correct":false,"feedback":{"fr":"","en":"Elimination covers intragroup balances as well as transactions (IAS 24, para. 4); only the investment entity exception departs from it, and it does not apply here.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"In which financial statements are the transactions between Orsalis and Tellane disclosed as related party items?","es":""},"explanation":{"fr":"","en":"Transactions and balances with other group entities are disclosed in the entity's financial statements (IAS 24, para. 4); the standard applies to a parent's separate financial statements under IAS 27 as well as to an entity's individual financial statements (IAS 24, para. 3). Tellane and Orsalis, each in its own accounts, therefore disclose these transactions; the consolidated accounts do not.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tellane's own financial statements","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Orsalis's separate financial statements (IAS 27)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Orsalis's consolidated financial statements","es":""},"correct":false,"feedback":{"fr":"","en":"On consolidation, these intragroup items are eliminated (IAS 24, para. 4).","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Why is the information on the sales at cost useful to the reader of Tellane's accounts?","es":""},"explanation":{"fr":"","en":"The objective of IAS 24 is to include the disclosures that signal that the financial position and profit or loss may have been affected by the existence of related parties and by transactions and balances with them (IAS 24, para. 1). Purchases at cost, without the usual 30% margin, illustrate that influence (case data).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It signals that Tellane's financial position and profit or loss may have been affected by the existence of a related party and by the transactions with it","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It allows Tellane's purchases to be corrected to market price","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 is a disclosure standard: it does not restate the amounts recognised, it signals the possible influence of the relationship (IAS 24, para. 1).","es":""}},{"id":"C","text":{"fr":"","en":"It serves only to prepare the consolidation eliminations","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure is aimed at the readers of the entity's financial statements, not at the consolidation mechanics (IAS 24, paras. 1 and 4).","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS24.000085","source":"V2","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IFRS10","IAS24.INTERACTIONS.IAS28_IFRS11","IAS24.INTERACTIONS.IAS19","IAS24.INTERACTIONS.IFRS2"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"FINANCIAL","tested_point":"INTERACTIONS_MINI","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS24.000007","review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-links"},"references":["IAS 24 §4","IAS 24 §9","IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"Link IAS 24 with the other standards for Arvelis Capital's related party note.","es":""},"explanation":{"fr":"","en":"IAS 24 relies on the other standards without repeating them: IFRS 10 for the investment entity and the exception to elimination (IAS 24, paras. 4 and 9); IFRS 11 and IAS 28 for joint control and significant influence (IAS 24, para. 9); IAS 19 and IFRS 2 for compensation, broken down into categories (IAS 24, paras. 9 and 17).","es":""},"common_error":{"fr":"","en":"Looking in IAS 24 for definitions or measurement rules that it borrows from IFRS 10, IFRS 11, IAS 28, IAS 19 or IFRS 2.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Arvelis Capital (a fictitious entity) is an investment entity as defined in IFRS 10: it measures its portfolio subsidiaries at fair value through profit or loss. In N (case data): (a) it charged 90,000 of advisory fees to Ombrine, a portfolio subsidiary measured at fair value through profit or loss; (b) it shares control of Lumen with another investor, and decisions about the relevant activities require their unanimous consent; (c) the compensation of its three key management personnel comprises 400,000 of salaries and bonuses payable within the year, 30,000 of contributions to a defined contribution pension plan and a 60,000 share option expense recognised under IFRS 2.","es":""},"parts":[{"prompt":{"fr":"","en":"What happens, in Arvelis's consolidated financial statements, to the 90,000 charged to Ombrine?","es":""},"explanation":{"fr":"","en":"Link with IFRS 10: an investment entity does not eliminate transactions and balances with its subsidiaries measured at fair value through profit or loss (IAS 24, para. 4); the 90,000 therefore remains in the consolidated accounts and is disclosed as a related party item. The term \"investment entity\" has the meaning given to it in IFRS 10 (IAS 24, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not eliminated and is included in the related party disclosures","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is eliminated like any intragroup transaction","es":""},"correct":false,"feedback":{"fr":"","en":"The elimination of intragroup transactions has an exception: between an investment entity and its subsidiaries measured at fair value through profit or loss, they are not eliminated (IAS 24, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"It is not mentioned, as Ombrine is not consolidated","es":""},"correct":false,"feedback":{"fr":"","en":"Ombrine remains a subsidiary, and therefore a related party (IAS 24, para. 9); it is precisely because the transaction is not eliminated that it must be disclosed (IAS 24, para. 4).","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"To know whether Lumen is a joint venture of Arvelis, and therefore a related party, where does Arvelis read the meaning of \"joint control\"?","es":""},"explanation":{"fr":"","en":"The terms control, investment entity, joint control and significant influence are defined in IFRS 10, IFRS 11 and IAS 28 and used in IAS 24 with the same meaning (IAS 24, para. 9). If the IFRS 11 analysis confirms joint control of Lumen, Lumen is a joint venture of Arvelis, and therefore a related party (IAS 24, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IFRS 11, whose meaning IAS 24 takes over","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In a definition specific to IAS 24, based on a 50% ownership threshold","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 creates neither its own definition nor a threshold: joint control and significant influence have the meanings in IFRS 11 and IAS 28 (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"In the agreement between the two investors, without reference to a standard","es":""},"correct":false,"feedback":{"fr":"","en":"The agreement provides the facts (unanimous consent); the criterion that qualifies them is the IFRS 11 one, to which IAS 24 refers (IAS 24, para. 9).","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Classify each item of key management personnel compensation in its IAS 24 category.","es":""},"explanation":{"fr":"","en":"Compensation includes all employee benefits as defined in IAS 19, including those to which IFRS 2 applies (IAS 24, para. 9). It is disclosed in total and by category (IAS 24, para. 17): 400,000 short-term, 30,000 post-employment, 60,000 share-based payment, i.e. 490,000. IAS 24 does not measure these amounts: it takes those recognised under IAS 19 and IFRS 2.","es":""},"common_error":{"fr":"","en":"Excluding the share option expense from compensation because it involves no cash outflow, or placing the pension contributions in short-term benefits.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SHORT_TERM","text":{"fr":"","en":"Short-term employee benefits","es":""}},{"id":"POST_EMPLOYMENT","text":{"fr":"","en":"Post-employment benefits","es":""}},{"id":"SHARE_BASED","text":{"fr":"","en":"Share-based payment","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"400,000 of salaries and bonuses payable within the year","es":""},"category":"SHORT_TERM"},{"id":"I2","text":{"fr":"","en":"30,000 of contributions to the defined contribution pension plan","es":""},"category":"POST_EMPLOYMENT"},{"id":"I3","text":{"fr":"","en":"60,000 share option expense (IFRS 2)","es":""},"category":"SHARE_BASED"}],"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000001","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000001","tested_point":"QST.IAS24.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-objective"},"references":["IAS 24 §1"],"exercise":{"prompt":{"fr":"","en":"The objective of IAS 24 is to require disclosure that signals the possible effect of related parties, and of their transactions and balances, on the entity's financial position and profit or loss.","es":""},"explanation":{"fr":"","en":"The standard exists to draw users' attention to the possibility that financial position and profit or loss are affected by the existence of related parties and by transactions and balances (including commitments) with them (IAS 24, para. 1). Trap: seeing IAS 24 as a standard that dictates how to recognise or measure these transactions, when it requires disclosure. Rule to remember: IAS 24 informs users of the possible effect of related parties on financial position and profit or loss (IAS 24, para. 1).","es":""},"common_error":{"fr":"","en":"Believing that the standard deals with the recognition and measurement of transactions with related parties.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000002","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000002","tested_point":"QST.IAS24.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-objective"},"references":["IAS 24 §1","IAS 24 §5"],"exercise":{"prompt":{"fr":"","en":"Why must financial statements provide information about related parties?","es":""},"explanation":{"fr":"","en":"Financial statements may be affected by the existence of related parties, their transactions and their balances; the disclosure lets the user take this into account (IAS 24, para. 1), although these relationships are a normal feature of business (IAS 24, para. 5). Trap: concluding that every relationship is suspect. Rule to remember: Related party disclosure signals a possible effect, without presuming an anomaly (IAS 24, paras. 1 and 5).","es":""},"common_error":{"fr":"","en":"Considering that a related party reflects an irregularity in itself.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because a transaction with a related party runs against the entity's interests and must therefore be flagged to users.","es":""},"correct":false,"feedback":{"fr":"","en":"Related party relationships are a normal feature of business: disclosure is not based on the idea that they work against the entity's interests (IAS 24, para. 5). Rule to remember: The disclosure signals a possible effect, without presuming an anomaly (IAS 24, para. 1).","es":""}},{"id":"B","text":{"fr":"","en":"Because these relationships, transactions and balances may affect financial position and profit or loss, even though such relationships are a normal feature of business.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because transactions with related parties must be measured at a value different from that of transactions with third parties, in order to reflect the risk of conflicts of interest they carry.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 24 requires disclosure and does not set a specific measurement for transactions with related parties (IAS 24, para. 1). Rule to remember: The purpose of the standard is to signal the possible effect of these relationships, not to dictate their measurement (IAS 24, para. 1).","es":""}},{"id":"D","text":{"fr":"","en":"Because a relationship with a related party reveals an irregularity that must be corrected in the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Related party relationships are a normal feature of business and do not in themselves reveal an irregularity (IAS 24, para. 5). Rule to remember: The disclosure aims to inform the user about the possible effect of the relationship (IAS 24, para. 1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000003","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.APPLICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000003","tested_point":"QST.IAS24.000003","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-scope"},"references":["IAS 24 §3"],"exercise":{"prompt":{"fr":"","en":"A parent that prepares separate financial statements must also provide in them the related party disclosures required by IAS 24.","es":""},"explanation":{"fr":"","en":"Disclosure of relationships, transactions and balances with related parties is required in consolidated and separate financial statements, and the standard also applies to separate financial statements (IAS 24, para. 3). Trap: believing it is limited to consolidated financial statements. Rule to remember: IAS 24 applies to consolidated as well as separate financial statements (IAS 24, para. 3).","es":""},"common_error":{"fr":"","en":"Limiting the application to consolidated financial statements only.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000004","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.APPLICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS24.000004","tested_point":"QST.IAS24.000004","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-scope"},"references":["IAS 24 §2"],"exercise":{"prompt":{"fr":"","en":"The management accountant of Lormont SA lists the work needed for the related party note. Which list matches what the standard helps to determine?","es":""},"explanation":{"fr":"","en":"The standard applies to identifying relationships and transactions with related parties, identifying balances (including commitments), determining the circumstances in which disclosure is required and determining its content (IAS 24, para. 2). Trap: reducing the scope to the transactions of the period. Rule to remember: The scope of IAS 24 covers relationships, transactions, balances, circumstances and the content of disclosure (IAS 24, para. 2).","es":""},"common_error":{"fr":"","en":"Reducing the scope of the standard to the transactions of the period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Identifying the transactions of the period, closing balances belonging in another note.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is not limited to transactions: it also covers relationships and balances, including commitments (IAS 24, para. 2). Rule to remember: The standard applies to relationships, transactions, balances, circumstances and the content of disclosure (IAS 24, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"Identifying relationships and transactions and the content of disclosure, the circumstances in which it is required being left to the entity's discretion.","es":""},"correct":false,"feedback":{"fr":"","en":"Determining the circumstances in which disclosure is required is part of the scope of the standard (IAS 24, para. 2). Rule to remember: The circumstances of disclosure fall within the scope of the standard, like its content (IAS 24, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"Determining the measurement methods for transactions with related parties and their tax treatment.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope of the standard is disclosure, not the measurement or tax treatment of transactions (IAS 24, para. 2). Rule to remember: The standard determines what to identify and when and how to disclose, without setting a measurement method (IAS 24, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"Identifying relationships and transactions, identifying balances (including commitments), the circumstances in which disclosure is required and its content.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000005","standard_id":"IAS24","concept_ids":["IAS24.SCOPE.INTRAGROUP"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000005","tested_point":"QST.IAS24.000005","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-intragroup"},"references":["IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"An analyst comments on how the Aurelio group presents intragroup transactions. Which statement is wrong?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, intragroup transactions and balances with related parties are eliminated, except between an investment entity and its subsidiaries measured at fair value through profit or loss; transactions and balances with other group entities are presented in the entity's own financial statements (IAS 24, para. 4). Trap: presenting balances with consolidated subsidiaries as related party balances in the consolidation. Rule to remember: Intragroup transactions are eliminated on consolidation and presented in the entity's own financial statements (IAS 24, para. 4).","es":""},"common_error":{"fr":"","en":"Presenting in the consolidated financial statements balances with consolidated subsidiaries as balances with related parties.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the consolidated financial statements, balances with consolidated subsidiaries are presented as balances with related parties.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the entity's own financial statements, transactions and balances with the other group entities are presented, like those with the entity's other related parties.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: transactions and balances with other group entities are presented in the entity's financial statements (IAS 24, para. 4). Rule to remember: Intragroup information appears in the entity's own financial statements (IAS 24, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"In the consolidated financial statements, intragroup transactions and balances are eliminated.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: elimination is the rule on consolidation for intragroup transactions and balances (IAS 24, para. 4). Rule to remember: On consolidation, intragroup transactions are eliminated (IAS 24, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"Elimination does not apply between an investment entity and its subsidiaries measured at fair value through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: the exception concerns transactions and balances between an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24, para. 4). Rule to remember: Elimination has an exception for investment entities (IAS 24, para. 4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000006","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.RELATED_PARTY_PERSON"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000006","tested_point":"QST.IAS24.000006","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-person"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Mireille Dubreuil has significant influence over Corvan SA, which prepares financial statements. Is Mireille a related party of Corvan?","es":""},"explanation":{"fr":"","en":"A person is related to the entity if they exercise control or joint control, have significant influence or are a member of the key management personnel of the entity or of its parent (IAS 24, para. 9). Mireille has significant influence: she is related. Trap: believing that only control counts. Rule to remember: Control, joint control, significant influence or key management make a person related to the entity (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Believing that only control makes a person related to the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, control over the entity is the criterion that makes a person related to it.","es":""},"correct":false,"feedback":{"fr":"","en":"Control is not the only criterion: joint control, significant influence and being key management also make a person related to the entity (IAS 24, para. 9). Rule to remember: Significant influence over the entity is enough to make a person related (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"No, an individual cannot be a related party of an entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition expressly covers persons and their close family: an individual can be related to the entity (IAS 24, para. 9). Rule to remember: A person is related if they control the entity, jointly control it, have significant influence or are key management (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, a person who has significant influence over the entity is a related party of that entity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, but provided Mireille is also a member of the entity's key management personnel or of its parent.","es":""},"correct":false,"feedback":{"fr":"","en":"The criteria in the definition are alternatives: significant influence is enough, without adding the status of key management (IAS 24, para. 9). Rule to remember: Control, joint control, significant influence or key management: each makes a person related (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000007","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.RELATED_PARTY_PERSON"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000007","tested_point":"QST.IAS24.000007","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-person"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Cormoran SA prepares financial statements. Which of the following persons are related parties of Cormoran? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The persons related to the entity are those who exercise control or joint control, who have significant influence or who are members of the key management personnel of the entity or of its parent, together with their close family members (IAS 24, para. 9). Léa, Hugo and Inès meet these criteria; Paul and Bruno do not. Trap: forgetting the parent or close family, or accepting a mere commercial link or a past employment. Rule to remember: The related party person is defined by control, joint control, significant influence, key management and close family (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Forgetting that the parent's key management personnel also make a person related to the entity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Léa Fabre, a member of the key management personnel of Cormoran's parent.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Paul Genet, a former employee of Cormoran who receives a retirement pension paid by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A retired former employee is not among the persons made related by the definition: he does not control the entity, has no significant influence and is not key management (IAS 24, para. 9). Rule to remember: Control, joint control, significant influence and key management (or close family) make a person related (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Hugo Marchal, who has joint control of Cormoran together with another investor.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Bruno Lacour, a sole trader who supplies 40% of Cormoran's purchases, with no other link with the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Economic dependence on a supplier does not, as such, make a related party (IAS 24). None of the criteria of the definition is met here (IAS 24, para. 9). Rule to remember: An important supplier is not related merely because of economic dependence (IAS 24).","es":""}},{"id":"E","text":{"fr":"","en":"Inès Rolland, spouse of Cormoran's finance director, who is himself a member of Cormoran's key management personnel.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000008","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CLOSE_FAMILY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000008","tested_point":"QST.IAS24.000008","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-family"},"references":["IAS 24 §9","IAS 24"],"exercise":{"prompt":{"fr":"","en":"A person's close family is limited to their children, spouse or partner, the children of the spouse or partner and their dependants.","es":""},"explanation":{"fr":"","en":"The definition mentions in particular children, spouse or partner, the children of the spouse or partner and dependants, but this list is not exhaustive (IAS 24, para. 9). The IFRS Interpretations Committee agenda decision of May 2015 states that other relatives, including parents or grandparents, may be close members of the family depending on the facts and circumstances. Trap: treating the list as closed. Rule to remember: The list of close family is not exhaustive; the assessment depends on the facts (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Treating the list of close family members as closed and excluding parents.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000010","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.KEY_MANAGEMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000010","tested_point":"QST.IAS24.000010","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-kmp"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"In Delmas SA, which person belongs to the key management personnel?","es":""},"explanation":{"fr":"","en":"Key management personnel comprise the persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including directors (IAS 24, para. 9). The deputy chief executive meets this definition. Trap: retaining a function or status (manager, shareholder) without examining the authority actually exercised. Rule to remember: A key management person is one who plans, directs and controls the entity's activities (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Qualifying a function (manager, shareholder) as key management without examining the authority exercised.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An accounting data-entry clerk working under the chief accountant, with no decision-making power.","es":""},"correct":false,"feedback":{"fr":"","en":"This person has neither the authority nor the responsibility for planning, directing and controlling the activities of the entity (IAS 24, para. 9). Rule to remember: Key management personnel are defined by authority and responsibility over the entity's activities (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"A deputy chief executive who has the authority and responsibility for planning, directing and controlling the activities of the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A minority shareholder who takes no part in the direction or management of the company.","es":""},"correct":false,"feedback":{"fr":"","en":"Being a shareholder is not enough: the criterion is authority and responsibility for planning, directing and controlling the activities (IAS 24, para. 9). Rule to remember: Key management personnel are defined by their powers over the activities, not by holding shares (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"A sales manager who carries out the targets set by the management for their own department and supervises a team of twelve salespeople spread over three sites.","es":""},"correct":false,"feedback":{"fr":"","en":"A manager who applies targets set by others has neither the authority nor the responsibility for planning, directing and controlling the entity's activities (IAS 24, para. 9). Rule to remember: Key management are those who plan, direct and control the activities (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000011","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.KEY_MANAGEMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000011","tested_point":"QST.IAS24.000011","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-kmp"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Albéric SA describes its key management personnel in a working note. Which sentence of that note is wrong?","es":""},"explanation":{"fr":"","en":"Key management personnel are not limited to executive directors: they include the persons having authority and responsibility for planning, directing and controlling the entity's activities, directly or indirectly, including directors (IAS 24, para. 9). Trap: reducing the notion to one category of office holders. Rule to remember: Key management is defined by authority over the activities, not by a title (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Limiting key management personnel to executive directors.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Key management personnel include the persons having authority and responsibility for planning, directing and controlling the entity's activities.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: it restates the criterion of the definition (IAS 24, para. 9). Rule to remember: The criterion for key management is authority and responsibility over the activities (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"The entity's directors are among the key management personnel.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: directors are included in key management personnel (IAS 24, para. 9). Rule to remember: Directors are part of key management (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Key management personnel are limited to the company's executive directors.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"This authority may be exercised directly or indirectly.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: the definition covers persons who plan, direct and control the activities directly or indirectly (IAS 24, para. 9). Rule to remember: A key manager's authority may be direct or indirect (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000012","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.TRANSACTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000001","tested_point":"VG.IAS24.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-transaction"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"A transfer of resources, services or obligations between the entity and a related party is a related party transaction, whether or not the entity charges a price.","es":""},"explanation":{"fr":"","en":"A related party transaction is a transfer of resources, services or obligations between the entity and a related party, whether or not a price is charged (IAS 24, para. 9). Trap: ruling out a free transfer on the grounds that it has no price. Rule to remember: The absence of a price charged does not take a transfer outside the notion of related party transaction (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Ruling out a transfer of resources or services because no price is charged.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000013","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.TRANSACTION"],"dimension":"APPLICATION","context":"V1_VG.IAS24.000001","tested_point":"VG.IAS24.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-transaction"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"During the year, the parent company of Varenne SA makes office premises available to it free of charge. No rent is charged. How should this arrangement be analysed?","es":""},"explanation":{"fr":"","en":"Making premises available to the entity is a transfer of resources between the entity and a related party, its parent; it is a related party transaction even if no price is charged (IAS 24, para. 9). Trap: concluding there is no transaction for lack of rent. Rule to remember: A transfer of resources with a related party is a transaction, with or without a price (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Not treating a free transfer of premises by the parent as a transaction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is a transfer of resources with a related party, even with no price charged.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is not a transaction, since the parent does not charge a price.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a price does not rule out the notion of transaction: a transfer of resources between the entity and a related party is one (IAS 24). Rule to remember: The price charged is not a condition of a related party transaction (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"It is a transaction if the parent later invoices a rent.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification does not depend on a future invoice: the transfer of resources is already a transaction (IAS 24). Rule to remember: The transfer of resources is enough, whether or not a price is charged (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"It is a transaction when the value of the premises is significant for the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition of a transaction contains no value threshold: what counts is the transfer of resources, services or obligations (IAS 24). Rule to remember: The notion of transaction rests on the transfer, not on an amount (IAS 24).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS24.000014","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CONTROL_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000014","tested_point":"QST.IAS24.000014","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-control-terms"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Which of the following situations, for a person, appear in the definition of a related party of the entity? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The definition of a related party for a person cites control, joint control, significant influence, and being key management of the entity or of its parent (IAS 24, para. 9). Being the main customer or an ordinary lender is not among them. Trap: confusing these three notions with each other or adding a mere business relationship. Rule to remember: Control, joint control and significant influence are three distinct situations in the definition (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Defining control or significant influence by an ownership percentage threshold specific to IAS 24.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Being the entity's main customer.","es":""},"correct":false,"feedback":{"fr":"","en":"Being an important customer is not one of the situations in the definition: economic dependence does not, as such, make a related party (IAS 24, para. 9). Rule to remember: The situations are control, joint control, significant influence and key management (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Controlling the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Lending funds to the entity on ordinary market terms.","es":""},"correct":false,"feedback":{"fr":"","en":"A provider of finance is not related merely because of its normal dealings with the entity (IAS 24). This situation is not in the definition (IAS 24, para. 9). Rule to remember: An ordinary loan does not by itself create a related party (IAS 24).","es":""}},{"id":"D","text":{"fr":"","en":"Having joint control of the entity.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Having significant influence over the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000015","standard_id":"IAS24","concept_ids":["IAS24.DEFINITIONS.CONTROL_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000015","tested_point":"QST.IAS24.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000002","section_id":"rule-control-terms"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Claire Bouvier holds 30% of the voting rights of Sablon SA. Which question helps determine whether she is a related party of Sablon by virtue of this holding?","es":""},"explanation":{"fr":"","en":"For a person, it is control, joint control or significant influence over the entity that makes them related (IAS 24, para. 9). A 30% holding is a case fact: it feeds the assessment of the situation, but the definition is not reduced to that percentage. Trap: looking in IAS 24 for an ownership threshold. Rule to remember: Determine whether the person has control, joint control or significant influence (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Defining control or significant influence by an ownership percentage threshold specific to IAS 24.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Does her holding exceed the percentage threshold set by the definition of a related party?","es":""},"correct":false,"feedback":{"fr":"","en":"The definition of a related party is expressed through the notions of control, joint control and significant influence, not through a percentage that it would itself set (IAS 24, para. 9). Rule to remember: The question concerns the situation conferred, not a threshold (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Is Claire entered in the shareholder register in her own name?","es":""},"correct":false,"feedback":{"fr":"","en":"Registration is a legal form: attention is given to the substance of the relationship and not merely its legal form (IAS 24). Rule to remember: The criterion is the situation of control, joint control or significant influence (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Does Sablon SA sell to Claire on arm's length terms?","es":""},"correct":false,"feedback":{"fr":"","en":"The terms of transactions are not used to identify the related party: they come after that identification (IAS 24, para. 9). Rule to remember: First identify the relationship (control, joint control, significant influence), then examine the transactions (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Does this holding give her control, joint control or significant influence over Sablon?","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000016","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000002","tested_point":"VG.IAS24.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-group"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Two subsidiaries of the same parent company are related parties of each other, since they belong to the same group.","es":""},"explanation":{"fr":"","en":"An entity is related to another when both belong to the same group: the parent, the subsidiaries and the fellow subsidiaries are therefore related to each other (IAS 24, para. 9). Trap: not treating two fellow subsidiaries as related. Rule to remember: Belonging to the same group makes entities related to each other (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Not treating two fellow subsidiaries as related to each other.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS24.000017","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.GROUP_ENTITIES"],"dimension":"APPLICATION","context":"V1_VG.IAS24.000002","tested_point":"VG.IAS24.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-group"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"The Hélios group comprises the parent Hélios Holding, two subsidiaries, Hélios Nord and Hélios Sud, and Hélios Est, a subsidiary of Hélios Nord. Hélios Sud prepares financial statements. With which group entities is Hélios Sud related?","es":""},"explanation":{"fr":"","en":"Hélios Sud is related to all the entities belonging to the same group: Hélios Holding (parent), Hélios Nord (fellow subsidiary) and Hélios Est (subsidiary of its fellow subsidiary) (IAS 24, para. 9). Trap: limiting related parties to the direct parent. Rule to remember: All entities of the same group are related to each other (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Limiting the group's related parties to the direct parent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"With Hélios Holding, which is its parent, and not with the other subsidiaries.","es":""},"correct":false,"feedback":{"fr":"","en":"The other group entities are related to Hélios Sud in the same way as the parent (IAS 24, para. 9). Rule to remember: All entities of the same group are related to each other (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"With Hélios Holding, Hélios Nord and Hélios Est: all belong to the same group.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"With Hélios Holding and Hélios Nord, but not with Hélios Est, which is not a direct subsidiary of the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of ownership does not matter: Hélios Est belongs to the same group, so it is related to Hélios Sud (IAS 24, para. 9). Rule to remember: Belonging to the same group is enough, whatever the hierarchical level (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"With the entities that exchange goods with it, the link depending on the exchanges made.","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship does not depend on there being exchanges or a direct link: group membership is enough (IAS 24, para. 9). Rule to remember: Entities of the same group are related to each other, with or without transactions (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000018","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_JV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000018","tested_point":"QST.IAS24.000018","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-jv"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Rivage SA prepares financial statements. Which of the following entities is a related party of Rivage?","es":""},"explanation":{"fr":"","en":"An entity is related to another when it is an associate or a joint venture of that other entity (IAS 24, para. 9). Océane, an associate of Rivage, is therefore related. Trap: confusing a joint venture or associate with a mere commercial partnership. Rule to remember: The entity's associate and joint venture are its related parties (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Confusing a joint venture (a related party) with a mere commercial partnership.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Océane SA, an associate of Rivage SA.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Pontal SA, a commercial partner tied to Rivage by a distribution contract, with neither joint control nor significant influence.","es":""},"correct":false,"feedback":{"fr":"","en":"A mere commercial partnership is not a joint venture: it does not make Pontal a related party, in the absence of joint control or significant influence (IAS 24, para. 9). Rule to remember: The joint venture and the associate are related, not the mere commercial partner (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Norlis SA, which has a director in common with Rivage and nothing else.","es":""},"correct":false,"feedback":{"fr":"","en":"A common director does not, as such, make two entities related (IAS 24). Rule to remember: The links cited in the definition make entities related, including the associate (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Finalia SA, a bank that finances Rivage on ordinary terms.","es":""},"correct":false,"feedback":{"fr":"","en":"A provider of finance is not related merely because of its normal dealings with the entity (IAS 24). Rule to remember: The associate is a related party, not the ordinary lender (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000019","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_JV"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000019","tested_point":"QST.IAS24.000019","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-jv"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Rivage SA and Delta SA share joint control of the joint venture Kappa. Rivage's accountant writes four findings for the related party note. Which one is wrong?","es":""},"explanation":{"fr":"","en":"A joint venture of the entity is a related party of that entity (IAS 24, para. 9), whereas two venturers are not related merely because of shared joint control (IAS 24). The finding that Kappa would not be related is therefore wrong. Trap: treating the joint venture as a mere commercial partnership. Rule to remember: The entity's joint venture is a related party, not a mere commercial partner (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Confusing a joint venture (a related party) with a mere commercial partnership.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Kappa, a joint venture of Rivage, is a related party of Rivage.","es":""},"correct":false,"feedback":{"fr":"","en":"This finding is right: a joint venture of the entity is a related party of that entity (IAS 24, para. 9). Rule to remember: The entity's joint venture is its related party (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Delta is not a related party of Rivage simply because they share joint control of Kappa.","es":""},"correct":false,"feedback":{"fr":"","en":"This finding is right: two venturers are not related simply because they share joint control of a joint venture (IAS 24). Rule to remember: Shared joint control does not make the venturers related to each other (IAS 24).","es":""}},{"id":"C","text":{"fr":"","en":"In Kappa's financial statements, Rivage is also a related party.","es":""},"correct":false,"feedback":{"fr":"","en":"This finding is right: the joint venture-venturer link works both ways, each entity being related to the other (IAS 24, para. 9). Rule to remember: The joint venture relationship makes both entities related to each other (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Kappa is a mere commercial partnership of Rivage: it is therefore not a related party.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000020","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.THIRD_PARTY_JV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000020","tested_point":"QST.IAS24.000020","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-third-party"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Delta SA and Omega SA are each a joint venture of the company Zénith. Delta prepares financial statements. Is Omega a related party of Delta?","es":""},"explanation":{"fr":"","en":"Two entities that are joint ventures of the same third party are related to each other (IAS 24, para. 9). Delta and Omega are therefore related, whether or not they have transactions. Trap: retaining only the direct relationships between the entity and the third party. Rule to remember: Two joint ventures of the same third party are related parties of each other (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Retaining only the direct relationships between the entity and the third party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: Delta and Omega do not have a direct relationship with each other.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a direct relationship is not decisive: the definition also covers two joint ventures of the same third party (IAS 24, para. 9). Rule to remember: Two joint ventures of the same third party are related, even with no direct link (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"No: entities controlled by Zénith could be related to each other, which is not the case here.","es":""},"correct":false,"feedback":{"fr":"","en":"This case is not limited to control: two joint ventures of the same third party are related without it controlling them alone (IAS 24, para. 9). Rule to remember: The link to the same third party, as a joint venture, makes two entities related (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: two joint ventures of the same third party are related to each other.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, provided Delta and Omega have entered into transactions with each other.","es":""},"correct":false,"feedback":{"fr":"","en":"The relationship exists regardless of transactions; it is they that then give rise to the detailed disclosure (IAS 24, para. 9). Rule to remember: Related party status precedes transactions and does not depend on them (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000021","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.POST_EMPLOYMENT_PLAN"],"dimension":"APPLICATION","context":"V1_QST.IAS24.000021","tested_point":"QST.IAS24.000021","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-plan"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"A pension fund is set up for the benefit of the employees of Lumen Services, a subsidiary of the Lumen group. Lumen Services prepares financial statements. How should this fund be analysed?","es":""},"explanation":{"fr":"","en":"A post-employment benefit plan for the benefit of the employees of the entity, or of an entity related to it, is a related party of the entity (IAS 24, para. 9). The fund set up for Lumen Services' employees is therefore one. Trap: not seeing the plan as a related party of the employer. Rule to remember: The plan for the benefit of the entity's employees is related to it (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Not treating the post-employment benefit plan as a related party of the employer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fund is not a related party, because a plan is not an entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition expressly cites the post-employment benefit plan among related entities (IAS 24, para. 9). Rule to remember: The plan for the benefit of the entity's employees is one of its related parties (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"The fund is a post-employment benefit plan for the benefit of the entity's employees: it is a related party of Lumen Services.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The fund is a related party provided Lumen Services is its sponsoring employer and itself funds the contributions paid into the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The plan is related as soon as it is for the benefit of the employees of the entity or of a related entity; being the sponsor is not a condition (IAS 24, para. 9). Rule to remember: The criterion is the benefit of the employees of the entity or of a related entity (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"The fund is a related party when it is a defined benefit plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition makes no distinction according to the type of plan: it covers the post-employment benefit plan for the benefit of employees (IAS 24, para. 9). Rule to remember: The type of plan is not a criterion for being a related party (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000022","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.CONTROLLED_BY_PERSON"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000022","tested_point":"QST.IAS24.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-controlled"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Frédéric Blanc is a director and a member of the key management personnel of Vallée SA. His adult daughter Chloé controls the company Mistral, which provides services to Vallée. Which reasoning of Vallée's accountant is wrong?","es":""},"explanation":{"fr":"","en":"An entity controlled or jointly controlled by a person identified as related to the entity is a related party of that entity; that person may be a close member of the family of a key manager (IAS 24, para. 9). Chloé being Frédéric's daughter, Mistral is related to Vallée. Trap: requiring the manager to control the entity himself. Rule to remember: The entity controlled by a close family member of a key manager is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Ignoring the entity controlled by a close member of the family of a manager.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Mistral is not a related party of Vallée, since it is Chloé who controls it and not Frédéric himself.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Chloé, daughter of a key manager of Vallée, is a close member of his family.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: children are among the close family members cited by the definition (IAS 24, para. 9). Rule to remember: A person's children are part of their close family (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Mistral is controlled by a person related to Vallée, which makes it a related party of Vallée.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: an entity controlled by a person identified as related to the entity is a related party of that entity (IAS 24, para. 9). Rule to remember: The entity controlled by a related person is itself related (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"The services provided by Mistral to Vallée therefore enter the analysis of related party transactions.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: once Mistral is a related party, its transactions with Vallée are to be analysed for disclosure (IAS 24, para. 9). Rule to remember: Once the related party is identified, its transactions are to be examined (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000024","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.MANAGEMENT_ENTITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000024","tested_point":"QST.IAS24.000024","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-mgmt-entity"},"references":["IAS 24 §9","IAS 24 §17A"],"exercise":{"prompt":{"fr":"","en":"The firm Gestion & Conseil makes its managing partner available to Tarn SA, where he acts as chief executive, a member of Tarn's key management personnel. Tarn prepares financial statements. Is the firm a related party of Tarn?","es":""},"explanation":{"fr":"","en":"An entity, or a member of its group, that provides the entity with key management personnel services is a related party of that entity (IAS 24, para. 9). The firm Gestion & Conseil is therefore a related party of Tarn; the entity does not apply to the pay the firm gives its own staff the breakdown required for key management compensation, and discloses instead the amounts incurred for these services (IAS 24, para. 17A). Trap: seeing a related party only in the individual manager. Rule to remember: The management entity that provides key management personnel is a related party (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Not seeing the entity that provides key management personnel as a related party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the functions of key management personnel are performed by individuals, not by the company that makes them available.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition also covers the entity that provides the key management personnel services, known as the management entity (IAS 24, para. 9). Rule to remember: The management entity is a related party of the entity to which it provides these services (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"No: an independent service company is related to its clients where it holds their shares, which is not the case here.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition does not make this case depend on holding shares: it is the provision of key management personnel services that makes the management entity related (IAS 24, para. 9). Rule to remember: The management entity is related by the nature of the service provided (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, for the part of the relationship that corresponds to the amounts invoiced for the management services.","es":""},"correct":false,"feedback":{"fr":"","en":"Related party status stems from the relationship with the management entity, not from the share of amounts invoiced; disclosing the amounts incurred is a consequence of it (IAS 24, para. 17A). Rule to remember: The management entity is a related party; the amounts incurred for its services are disclosed (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Yes: the entity that provides Tarn with key management personnel services is a related party of Tarn.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000025","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.ASSOC_SUBSIDIARIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000025","tested_point":"QST.IAS24.000025","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000003","section_id":"rule-assoc-subs"},"references":["IAS 24 §12"],"exercise":{"prompt":{"fr":"","en":"The investor that has significant influence over an associate is not related to that associate's subsidiaries.","es":""},"explanation":{"fr":"","en":"In the definition of a related party, an associate includes the subsidiaries of the associate; the subsidiary of an associate and the investor with significant influence over that associate are therefore related to each other (IAS 24, para. 12). Trap: stopping at the associate itself. Rule to remember: The associate's subsidiaries are related to the investor with significant influence over it (IAS 24, para. 12).","es":""},"common_error":{"fr":"","en":"Excluding the associate's subsidiaries.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000026","standard_id":"IAS24","concept_ids":["IAS24.RELATIONSHIPS.SUBSTANCE_OVER_FORM"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000026","tested_point":"QST.IAS24.000026","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000004","section_id":"rule-substance"},"references":["IAS 24 §10"],"exercise":{"prompt":{"fr":"","en":"To assess each possible related party relationship, the entity relies on the legal form of the relationship.","es":""},"explanation":{"fr":"","en":"In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely its legal form (IAS 24, para. 10). Trap: concluding on the legal arrangement alone. Rule to remember: The substance of the relationship is examined, not merely its legal form (IAS 24, para. 10).","es":""},"common_error":{"fr":"","en":"Concluding on legal form alone, without examining the substance of the relationship.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000028","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000003","tested_point":"VG.IAS24.000003","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-common"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Two entities are related parties of each other as soon as they have a director in common.","es":""},"explanation":{"fr":"","en":"Two entities are not related parties as such simply because they have a director or a member of key management personnel in common (IAS 24, para. 11). Another link cited by the definition is needed. Trap: concluding there is a relationship from a common director alone. Rule to remember: A common director does not, as such, make two entities related (IAS 24, para. 11).","es":""},"common_error":{"fr":"","en":"Concluding that two entities are related because they have a director in common.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS24.000029","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.COMMON_DIRECTOR"],"dimension":"APPLICATION","context":"V1_VG.IAS24.000003","tested_point":"VG.IAS24.000003","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-common"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Hélène Noël sits on the board of directors of both Pavot SA and Quartz SA. She holds no shares in either company and exercises neither control nor significant influence over them as a shareholder. Pavot prepares financial statements. Is Quartz a related party of Pavot merely because of this common director?","es":""},"explanation":{"fr":"","en":"Two entities are not related parties as such simply because they have a director or a member of key management personnel in common (IAS 24, para. 11). Here no other link (control, significant influence) is given: Quartz is not a related party of Pavot on this ground alone. Trap: concluding there is a relationship from the shared seat alone. Rule to remember: A common director does not, as such, make two entities related (IAS 24, para. 11).","es":""},"common_error":{"fr":"","en":"Concluding that two entities are related because they have a director in common.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A shared board seat is enough to link the two companies.","es":""},"correct":false,"feedback":{"fr":"","en":"A common director does not, as such, make two entities related (IAS 24, para. 11). Rule to remember: Another link cited by the definition is needed, which is not the case here (IAS 24, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"Hélène is key management of both companies and thus links Pavot and Quartz.","es":""},"correct":false,"feedback":{"fr":"","en":"Hélène may be related to each of the companies, but that does not link the two companies to each other: two entities with a director or key manager in common are not related as such (IAS 24, para. 11). Rule to remember: The common manager creates no link between the entities (IAS 24, para. 11).","es":""}},{"id":"C","text":{"fr":"","en":"A common director does not, as such, make the two entities related.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Pavot and Quartz are related if they enter into transactions with each other.","es":""},"correct":false,"feedback":{"fr":"","en":"Transactions do not establish related party status: the link must come from the definition itself (IAS 24, para. 11). Rule to remember: A common director does not become a link because the entities trade (IAS 24, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000030","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.JOINT_VENTURERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000004","tested_point":"VG.IAS24.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-jv"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Alpha SA and Béta SA share joint control of the joint venture Gamma. Béta prepares financial statements. Is Alpha a related party of Béta merely because of this joint control of Gamma?","es":""},"explanation":{"fr":"","en":"Two venturers are not related parties as such simply because they share joint control of a joint venture (IAS 24, para. 11). Alpha is therefore not a related party of Béta on that ground alone, even though Gamma is related to each. Trap: transferring the relationship with the joint venture to the other venturers. Rule to remember: Shared joint control does not make the venturers related to each other (IAS 24, para. 11).","es":""},"common_error":{"fr":"","en":"Treating two venturers as related merely because of joint control of a joint venture.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: two venturers are not related simply because they share joint control of a joint venture.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: joint control of the same entity links the venturers to each other, in both directions and with no other condition.","es":""},"correct":false,"feedback":{"fr":"","en":"This sharing of joint control does not, as such, link the venturers to each other (IAS 24, para. 11). Rule to remember: Two venturers are not related merely because of joint control of a joint venture (IAS 24, para. 11).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: Alpha and Béta are each related to Gamma, so they are related to each other.","es":""},"correct":false,"feedback":{"fr":"","en":"Relationships with Gamma are not passed from one venturer to the other: the link between two venturers does not result from their link with the same joint venture (IAS 24, para. 11). Rule to remember: Two venturers are not related merely because of joint control of a joint venture (IAS 24, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"No: Gamma is not itself a related party of the two venturers.","es":""},"correct":false,"feedback":{"fr":"","en":"Gamma, a joint venture of Béta, is a related party of Béta (IAS 24, para. 9). The question concerns the link between the venturers, which does not exist merely because of joint control (IAS 24, para. 11). Rule to remember: The joint venture is related to its venturers; they are not related to each other on that ground alone (IAS 24, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000031","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.JOINT_VENTURERS"],"dimension":"ANALYSIS","context":"V1_VG.IAS24.000004","tested_point":"VG.IAS24.000004","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-jv"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"In its related party note, Lutèce SA lists its relationships with Marais SA and with the joint venture Nacre, of which they both share joint control. Which line of this note is wrong?","es":""},"explanation":{"fr":"","en":"Two venturers are not related simply because they share joint control of a joint venture (IAS 24, para. 11), whereas the joint venture is a related party of each (IAS 24, para. 9). The line making Marais a related party of Lutèce is therefore wrong. Trap: transferring the relationship with the joint venture to the other venturers. Rule to remember: Shared joint control does not make the venturers related to each other (IAS 24, para. 11).","es":""},"common_error":{"fr":"","en":"Treating two venturers as related merely because of joint control of a joint venture.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nacre, a joint venture of Lutèce, is a related party of Lutèce.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is right: a joint venture of the entity is a related party of that entity (IAS 24, para. 9). Rule to remember: The entity's joint venture is its related party (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"Marais is a related party of Lutèce, because the two share joint control of Nacre.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Lutèce is a related party of Nacre in Nacre's financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is right: the link between joint venture and venturer makes both entities related to each other (IAS 24, para. 9). Rule to remember: The joint venture relationship links the two entities to each other (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Lutèce's transactions with Nacre are to be examined for related party disclosure.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is right: Nacre being a related party, its transactions with Lutèce fall within the disclosure (IAS 24, para. 9). Rule to remember: Once the related party is identified, its transactions are to be examined (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000032","standard_id":"IAS24","concept_ids":["IAS24.EXCLUSIONS.NORMAL_DEALINGS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000032","tested_point":"QST.IAS24.000032","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-normal"},"references":["IAS 24 §11"],"exercise":{"prompt":{"fr":"","en":"Ysol SA prepares financial statements. Which of these entities are not related parties of Ysol merely because of their normal dealings with it? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Public utilities, providers of finance, trade unions and important customers or suppliers are not related parties merely because of their normal dealings or economic dependence, in the absence of control, joint control or significant influence (IAS 24, para. 11). A subsidiary, an associate and an entity controlled by a key manager are related (IAS 24, para. 9). Trap: seeing a related party in every important business partner. Rule to remember: Normal dealings or economic dependence are not enough to create a related party (IAS 24, para. 11).","es":""},"common_error":{"fr":"","en":"Treating an important customer or supplier as a related party because of economic dependence.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The electricity distributor that supplies Ysol's plants at standard rates.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Ysol Logistique, a subsidiary of Ysol, 100% owned by Ysol since its creation.","es":""},"correct":false,"feedback":{"fr":"","en":"A subsidiary belongs to the same group as Ysol: it is related to Ysol (IAS 24, para. 9). Rule to remember: Group membership makes entities related, unlike mere normal dealings (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Finora SA, an associate of Ysol.","es":""},"correct":false,"feedback":{"fr":"","en":"An associate of the entity is a related party of that entity (IAS 24, para. 9). Rule to remember: The associate is related to the entity; it is not a mere normal dealing (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"A customer that accounts for 45% of Ysol's revenue, with neither control nor significant influence over it.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Garance SA, controlled by Ysol's chief executive.","es":""},"correct":false,"feedback":{"fr":"","en":"An entity controlled by a person related to the entity, here a key manager, is a related party of that entity (IAS 24, para. 9). Rule to remember: Control by a key manager makes the entity related (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000034","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000005","tested_point":"VG.IAS24.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-parent"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"An entity discloses its relationships with its parent and with its subsidiaries, whether or not it entered into transactions with them during the year.","es":""},"explanation":{"fr":"","en":"Relationships between a parent and its subsidiaries are disclosed irrespective of whether there have been transactions; the entity also discloses the name of its parent (IAS 24, para. 13). Trap: omitting the information for lack of transactions. Rule to remember: The parent-subsidiary relationship is disclosed even without transactions (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Omitting the information about the parent because no transaction took place.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS24.000035","standard_id":"IAS24","concept_ids":["IAS24.PARENT.DISCLOSURE"],"dimension":"APPLICATION","context":"V1_VG.IAS24.000005","tested_point":"VG.IAS24.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-parent"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Vexin SA is 100% owned by Vexin Holding. During the year, Vexin SA entered into no transaction with Vexin Holding and has no balance with it. The controller hesitates to mention the parent in the related party note. What should be done?","es":""},"explanation":{"fr":"","en":"The relationship between a parent and its subsidiaries is disclosed irrespective of whether there have been transactions, and the entity discloses the name of its parent (IAS 24, para. 13). Vexin SA therefore mentions Vexin Holding even with no transaction or balance. Trap: tying the disclosure to the existence of operations. Rule to remember: The parent-subsidiary relationship is disclosed even without transactions (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Omitting the information about the parent because no transaction took place.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Not mention the parent, since the entity has neither a transaction nor a balance with it.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure of the parent-subsidiary relationship is given irrespective of whether there have been transactions (IAS 24, para. 13). Rule to remember: The absence of transactions does not remove the need to disclose the relationship (IAS 24, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"Mention the parent in the group's consolidated financial statements, not in those of Vexin SA.","es":""},"correct":false,"feedback":{"fr":"","en":"Naming the parent concerns the entity itself, including when there are no transactions; it is not reserved to consolidated statements (IAS 24, para. 13). Rule to remember: The entity discloses the name of its parent in its own financial statements (IAS 24, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"Mention the parent if a balance exists at year-end.","es":""},"correct":false,"feedback":{"fr":"","en":"The existence of a balance does not condition disclosure of the relationship: it is disclosed irrespective of transactions (IAS 24, para. 13). Rule to remember: The parent-subsidiary relationship is disclosed even without a balance or transaction (IAS 24, para. 13).","es":""}},{"id":"D","text":{"fr":"","en":"Disclose the relationship with the parent and its name, even without transactions.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000036","standard_id":"IAS24","concept_ids":["IAS24.PARENT.NEXT_SENIOR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000036","tested_point":"QST.IAS24.000036","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-next"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Nexor SA is held by Nexor Holding, itself controlled by the company Orbis, the ultimate controlling party. Neither Nexor Holding nor Orbis produces consolidated financial statements available for public use; the company Pléiade, located between Nexor Holding and Orbis, does. Which names does Nexor SA disclose?","es":""},"explanation":{"fr":"","en":"The entity discloses the name of its parent and, if different, of the party that exercises ultimate control; if neither produces consolidated financial statements available for public use, it also discloses the name of the next most senior parent that does (IAS 24, para. 13). Nexor SA therefore names Nexor Holding, Orbis and Pléiade. Trap: stopping at the immediate parent. Rule to remember: Failing publication by the parent and the ultimate controlling party, the next most senior parent that publishes is also named (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Naming the immediate parent even though it and the ultimate controlling party do not publish consolidated statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The name of its immediate parent, Nexor Holding, that is the company that directly holds its shares.","es":""},"correct":false,"feedback":{"fr":"","en":"This mention is insufficient: the entity also discloses, if different, the party that exercises ultimate control, and here the next most senior parent that produces public consolidated statements (IAS 24, para. 13). Rule to remember: The parent, the ultimate controlling party and, failing publication, the next most senior parent that publishes are named (IAS 24, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"The names of Nexor Holding (parent) and Orbis (ultimate control), Pléiade being neither its parent nor the ultimate controlling party.","es":""},"correct":false,"feedback":{"fr":"","en":"Pléiade is named in addition to the parent and the ultimate controlling party, since neither Nexor Holding nor Orbis publishes consolidated statements (IAS 24, para. 13). Rule to remember: The parent, the ultimate controlling party and, failing publication, the next most senior parent that publishes are named (IAS 24, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"The names of Nexor Holding (parent), Orbis (ultimate control) and Pléiade (next most senior parent that publishes consolidated statements).","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The name of Pléiade, since it is the one that publishes consolidated statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Pléiade is added to the names of the parent and of the ultimate controlling party and does not replace them (IAS 24, para. 13). Rule to remember: The next most senior parent that publishes is named in addition to the parent and the ultimate controlling party (IAS 24, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000037","standard_id":"IAS24","concept_ids":["IAS24.PARENT.NEXT_SENIOR"],"dimension":"APPLICATION","context":"V1_QST.IAS24.000037","tested_point":"QST.IAS24.000037","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-next"},"references":["IAS 24 §13"],"exercise":{"prompt":{"fr":"","en":"Aster SA is held by Aster Holding, which does not publish consolidated statements. Ultimate control is exercised by the Roux family, individuals who of course produce none. Between the two sits the Zéphyr group, a more senior parent that publishes consolidated statements available for public use. What must Aster SA disclose?","es":""},"explanation":{"fr":"","en":"The entity discloses the name of its parent, of the party that exercises ultimate control if different and, if neither produces consolidated statements available for public use, of the next most senior parent that does (IAS 24, para. 13). Aster SA therefore names Aster Holding, the Roux family and the Zéphyr group. Trap: leaving out the ultimate controlling party because it is not a company. Rule to remember: Parent, ultimate controlling party and, failing publication, the most senior parent that publishes are named (IAS 24, para. 13).","es":""},"common_error":{"fr":"","en":"Naming the immediate parent even though it and the ultimate controlling party do not publish consolidated statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Aster Holding, its parent, since the family produces no statements and Zéphyr is not its direct parent.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure does not stop at the parent: the entity also discloses the ultimate controlling party if different and, failing publication by both, the next most senior parent that publishes (IAS 24, para. 13). Rule to remember: Parent, ultimate controlling party and the most senior parent that publishes are named (IAS 24, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"Aster Holding and Zéphyr, but not the Roux family, which is not an entity and does not produce consolidated financial statements available for public use.","es":""},"correct":false,"feedback":{"fr":"","en":"The party that exercises ultimate control is disclosed even if they are individuals: the rule refers to the party that exercises ultimate control (IAS 24, para. 13). Rule to remember: The ultimate controlling party is named if different from the parent (IAS 24, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"Aster Holding (parent), the Roux family (ultimate control) and the Zéphyr group (next most senior parent that publishes).","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The Zéphyr group, which publishes consolidated statements available for public use.","es":""},"correct":false,"feedback":{"fr":"","en":"Zéphyr is added to the parent and the ultimate controlling party and does not replace them (IAS 24, para. 13). Rule to remember: The most senior parent that publishes is named in addition to the other two (IAS 24, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000038","standard_id":"IAS24","concept_ids":["IAS24.PARENT.RATIONALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000038","tested_point":"QST.IAS24.000038","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-why"},"references":["IAS 24 §15"],"exercise":{"prompt":{"fr":"","en":"The disclosure about parent-subsidiary relationships required by IAS 24 replaces that required by IAS 27 and IFRS 12 on the same subject.","es":""},"explanation":{"fr":"","en":"The disclosure about parent-subsidiary relationships required by IAS 24 is in addition to the requirements of IAS 27 and IFRS 12 (IAS 24, para. 15): it does not replace them. Trap: believing that one disclosure relieves the other. Rule to remember: IAS 24's disclosure about the parent-subsidiary relationship is a supplement, not a substitute (IAS 24, para. 15).","es":""},"common_error":{"fr":"","en":"Believing that the disclosure about the parent replaces that of IFRS 12.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000039","standard_id":"IAS24","concept_ids":["IAS24.PARENT.RATIONALE"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000039","tested_point":"QST.IAS24.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000006","section_id":"rule-why"},"references":["IAS 24 §14","IAS 24 §15"],"exercise":{"prompt":{"fr":"","en":"An intern summarises why the disclosure about parent-subsidiary relationships is given. Which sentence of the summary is wrong?","es":""},"explanation":{"fr":"","en":"The control relationship is disclosed as soon as control exists, even without transactions, so that users can assess the effect of related party relationships (IAS 24, para. 14); this disclosure is in addition to the requirements of IAS 27 and IFRS 12 (IAS 24, para. 15). The sentence that makes disclosure depend on transactions is therefore wrong. Trap: tying disclosure of control to the existence of flows. Rule to remember: Control is disclosed even without transactions (IAS 24, para. 14).","es":""},"common_error":{"fr":"","en":"Believing that the disclosure about the parent replaces that of IFRS 12.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The control relationship is disclosed as soon as control exists, even without transactions.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: the control relationship is disclosed as soon as control exists, even without transactions (IAS 24, para. 14). Rule to remember: Control is enough to trigger the disclosure (IAS 24, para. 14).","es":""}},{"id":"B","text":{"fr":"","en":"The control relationship is disclosed only when transactions have taken place between the parent and the subsidiary.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"This disclosure enables users to assess the effect of related party relationships.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: that is the purpose of disclosing the control relationship (IAS 24, para. 14). Rule to remember: The disclosure helps the user assess the effect of related party relationships (IAS 24, para. 14).","es":""}},{"id":"D","text":{"fr":"","en":"It is in addition to the requirements of IAS 27 and IFRS 12 on the same relationships.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is right: the disclosure about parent-subsidiary relationships is in addition to the requirements of IAS 27 and IFRS 12 (IAS 24, para. 15). Rule to remember: IAS 24's disclosure supplements that of IAS 27 and IFRS 12 (IAS 24, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000040","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000040","tested_point":"QST.IAS24.000040","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"In Cèdre SA's related party note, key management personnel compensation is presented by category. Which of these categories are in the list to be presented? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Key management personnel compensation is disclosed in total and for each of five categories: short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits and share-based payment (IAS 24, para. 17). Dividends and loans are not among them. Trap: forgetting a category or adding one that does not exist. Rule to remember: Key management compensation is presented in total and by five categories (IAS 24, para. 17).","es":""},"common_error":{"fr":"","en":"Forgetting one of the five categories, for example share-based payment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Dividends received by the manager as a shareholder.","es":""},"correct":false,"feedback":{"fr":"","en":"Dividends are not one of the categories of compensation cited: the list comprises short-term benefits, post-employment benefits, other long-term benefits, termination benefits and share-based payment (IAS 24, para. 17). Rule to remember: Compensation is presented in total and by these five categories (IAS 24, para. 17).","es":""}},{"id":"B","text":{"fr":"","en":"Short-term employee benefits.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Post-employment benefits.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Loans granted to the manager by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A loan is not a category of compensation: it belongs to the other transactions and balances with the manager (IAS 24, para. 17). Rule to remember: The five categories cited are used to present compensation (IAS 24, para. 17).","es":""}},{"id":"E","text":{"fr":"","en":"Share-based payment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000042","standard_id":"IAS24","concept_ids":["IAS24.KMP.COMPENSATION"],"dimension":"CALCULATION","context":"V1_QST.IAS24.000042","tested_point":"QST.IAS24.000042","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-compensation"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"For the year, the key management personnel of Platane SA received: short-term benefits {short_term_benefits}; post-employment benefits {post_employment_benefits}; other long-term benefits {other_long_term_benefits}; termination benefits {termination_benefits}; share-based payment {share_based_payment}. A manager also received a loan of 50,000 from the entity, outstanding at year-end. Calculate the total key management personnel compensation to be presented.","es":""},"explanation":{"fr":"","en":"Approach: 1,260,000 + 180,000 + 45,000 + 120,000 + 215,000 = 1,820,000: the total is the sum of the five categories to be presented (IAS 24, para. 17). The loan of 50,000 is not a category of compensation: it is examined with the other transactions and balances with managers (IAS 24, para. 18). Trap: adding the loan to the total or forgetting a category, for example share-based payment. Rule to remember: Total key management personnel compensation is the sum of the five categories cited (IAS 24, para. 17).","es":""},"common_error":{"fr":"","en":"Adding to the compensation total a loan granted to the manager.","es":""},"format":"CALCULATION","placeholders":[{"id":"short_term_benefits","value":"1260000","unit":"EUR"},{"id":"post_employment_benefits","value":"180000","unit":"EUR"},{"id":"other_long_term_benefits","value":"45000","unit":"EUR"},{"id":"termination_benefits","value":"120000","unit":"EUR"},{"id":"share_based_payment","value":"215000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Short-term benefits","es":""},"value":"1260000","unit":"EUR"},{"label":{"fr":"","en":"Post-employment benefits","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Other long-term benefits","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Termination benefits","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Share-based payment","es":""},"value":"215000","unit":"EUR"}],"steps":[{"id":"TOTAL_COMPENSATION","label":{"fr":"","en":"Total key management personnel compensation","es":""},"answer":1820000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_COMPENSATION","meaning":{"fr":"","en":"Total key management personnel compensation","es":""},"expression":"a + b + c + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Short-term benefits","es":""},"value":1260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Post-employment benefits","es":""},"value":180000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Other long-term benefits","es":""},"value":45000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Termination benefits","es":""},"value":120000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Share-based payment","es":""},"value":215000,"unit":"EUR"}],"result":1820000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 1,260,000 + 180,000 + 45,000 + 120,000 + 215,000 = 1,820,000: the total is the sum of the five categories to be presented (IAS 24, para. 17).","es":""}}],"rationale":{"fr":"","en":"Total key management personnel compensation is the sum of the five categories cited (IAS 24, para. 17).","es":""},"references":["REF.IAS24.17"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000044","standard_id":"IAS24","concept_ids":["IAS24.KMP.OTHER_TRANSACTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000044","tested_point":"QST.IAS24.000044","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-other"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"In addition to the compensation of its finance director, Cyprès SA granted him a loan, outstanding at year-end. How is this loan treated in the related party note?","es":""},"explanation":{"fr":"","en":"If there have been transactions between related parties, the entity discloses the nature of the relationship and the information about the transactions and balances (including commitments) necessary to understand their effect, including the amount and terms of balances (IAS 24, para. 18). The loan to the finance director is therefore disclosed in addition to compensation. Trap: believing that compensation covers all balances with managers. Rule to remember: Transactions and balances with managers are disclosed in addition to their compensation (IAS 24, para. 18).","es":""},"common_error":{"fr":"","en":"Considering that compensation covers all balances with managers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is covered by the compensation disclosure, which covers the relationships with managers.","es":""},"correct":false,"feedback":{"fr":"","en":"Compensation does not exhaust the dealings with managers: a loan is a transaction and a balance to be disclosed in addition (IAS 24, para. 18). Rule to remember: Transactions and balances with managers are disclosed in addition to their compensation (IAS 24, para. 18).","es":""}},{"id":"B","text":{"fr":"","en":"It need not be disclosed, because a manager is not a related party for loans.","es":""},"correct":false,"feedback":{"fr":"","en":"The finance director is a related party and his transactions and balances with the entity are to be disclosed (IAS 24, para. 18). Rule to remember: The disclosures about transactions and balances apply to key managers (IAS 24, para. 18).","es":""}},{"id":"C","text":{"fr":"","en":"It is disclosed as a transaction and balance with a related party, in addition to compensation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is added to the short-term benefits category of compensation.","es":""},"correct":false,"feedback":{"fr":"","en":"A loan is not an employee benefit: it does not fall within the categories of compensation and remains a separate transaction and balance (IAS 24, para. 18). Rule to remember: The loan is presented with transactions and balances, not within compensation (IAS 24, para. 18).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000045","standard_id":"IAS24","concept_ids":["IAS24.KMP.OTHER_TRANSACTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000045","tested_point":"QST.IAS24.000045","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-other"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"During the year, Hêtre SA sold goods to a company controlled by a member of its key management personnel and granted a loan to another key manager. Which statements are right? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"If there have been transactions between related parties, the entity discloses the nature of the relationship, the amount of transactions, the amount of balances with their terms, allowances and the expense for doubtful debts (IAS 24, para. 18), separately for each category of related parties, including key management personnel (IAS 24). The loan and the sale to the company controlled by a manager are therefore concerned. Trap: believing that compensation covers all balances with managers. Rule to remember: Transactions and balances with managers and their entities are disclosed by category, in addition to compensation (IAS 24, para. 18).","es":""},"common_error":{"fr":"","en":"Considering that compensation covers all balances with managers.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loan is added to the manager's compensation in the short-term benefits category, so that the compensation total increases by the same amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A loan is not an employee benefit; it is presented with transactions and balances with related parties (IAS 24, para. 18). Rule to remember: The loan does not fall within the categories of compensation (IAS 24, para. 18).","es":""}},{"id":"B","text":{"fr":"","en":"The sale to the company controlled by the manager is outside the scope, since the manager is not himself the counterparty.","es":""},"correct":false,"feedback":{"fr":"","en":"An entity controlled by a key manager is itself a related party (IAS 24, para. 9); the sale is therefore a transaction with a related party. Rule to remember: The entity controlled by a key manager is a related party whose transactions are disclosed (IAS 24, para. 18).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of the transactions, the amount of outstanding balances with their terms and conditions, and any allowances are part of the minimum disclosures.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Compensation disclosed in total and by category is sufficient for the other transactions and balances with these managers or their entities.","es":""},"correct":false,"feedback":{"fr":"","en":"The compensation disclosure does not exempt from the disclosures about other transactions and balances with related parties (IAS 24, para. 18). Rule to remember: Transactions and balances are disclosed in addition to compensation (IAS 24, para. 18).","es":""}},{"id":"E","text":{"fr":"","en":"These disclosures are given separately for the category of key management personnel of the entity or of its parent, and not in an overall related party total.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000046","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CONTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000046","tested_point":"QST.IAS24.000046","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-content"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"Transactions with related parties took place during the year. Which of these items are part of the minimum disclosure? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"At a minimum, the entity discloses the amount of the transactions, the amount of balances (including commitments) with their terms and conditions, allowances for doubtful debts associated with the balances and the expense recognised in the period for bad or doubtful debts due from related parties (IAS 24, para. 18). Trap: disclosing transaction amounts without balances, commitments, terms and guarantees. Rule to remember: The minimum disclosure combines transactions, balances with terms, allowances and the expense for the period (IAS 24, para. 18).","es":""},"common_error":{"fr":"","en":"Disclosing transaction amounts without balances, commitments, terms and guarantees.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the transactions.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Total revenue earned from unrelated third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"Revenue from third parties is not an element of the minimum related party disclosure: it concerns transactions and balances with related parties (IAS 24, para. 18). Rule to remember: The minimum disclosure covers transactions, balances, allowances and the bad debt expense (IAS 24, para. 18).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of balances, including commitments, with their terms and conditions.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Allowances for doubtful debts associated with the balances.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The expected return on investments in related parties.","es":""},"correct":false,"feedback":{"fr":"","en":"An expected return is not an element of the minimum disclosure: it concerns the amounts of transactions and balances, terms, allowances and the expense (IAS 24, para. 18). Rule to remember: The minimum disclosure concerns recorded amounts, not expected returns (IAS 24, para. 18).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000048","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"CALCULATION","context":"V1_QST.IAS24.000048","tested_point":"QST.IAS24.000048","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"At year-end, Sorbier SA has a gross receivable of {gross_balance} from its subsidiary, against which it has recognised an allowance of {allowance}. Calculate the net balance of the receivable from the related party.","es":""},"explanation":{"fr":"","en":"Approach: 480,000 − 36,000 = 444,000: the net balance is the gross balance less the associated allowance (IAS 24, para. 18). For disclosure, the entity discloses the amount of the balance and the allowances for doubtful debts associated with it (IAS 24, para. 18). Trap: forgetting to deduct the allowance, or presenting it without linking it to the balance. Rule to remember: The net balance of a receivable from a related party is the gross balance less the associated allowance (IAS 24, para. 18).","es":""},"common_error":{"fr":"","en":"Presenting the gross balance without the allowance associated with balances with related parties.","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_balance","value":"480000","unit":"EUR"},{"id":"allowance","value":"36000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Gross receivable from the subsidiary","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Allowance for doubtful debts","es":""},"value":"36000","unit":"EUR"}],"steps":[{"id":"NET_BALANCE","label":{"fr":"","en":"Net receivable balance","es":""},"answer":444000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_BALANCE","meaning":{"fr":"","en":"Net receivable balance","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross receivable from the subsidiary","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Allowance for doubtful debts","es":""},"value":36000,"unit":"EUR"}],"result":444000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 480,000 − 36,000 = 444,000: the net balance is the gross balance less the associated allowance (IAS 24, para. 18).","es":""}}],"rationale":{"fr":"","en":"The net balance of a receivable from a related party is the gross balance less the associated allowance (IAS 24, para. 18).","es":""},"references":["REF.IAS24.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000049","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ALLOWANCES"],"dimension":"CALCULATION","context":"V1_QST.IAS24.000049","tested_point":"QST.IAS24.000049","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-allowances"},"references":["IAS 24 §18"],"exercise":{"prompt":{"fr":"","en":"On Mélèze SA's receivables from related parties, the cumulative allowance is {opening_allowance} at the beginning and {reported_closing} at the end of the year. During the year, {write_offs} of impaired receivables were written off, the corresponding allowance being used; there was no other movement. Calculate the allowance expense for the year to be disclosed.","es":""},"explanation":{"fr":"","en":"Approach: closing = opening + expense − write-offs, so expense = 34,000 − 20,000 + 8,000 = 22,000. The entity discloses the allowances associated with the balances and the expense for the year for bad or doubtful debts due from related parties (IAS 24, para. 18). Trap: confusing the closing cumulative allowance (34,000) or its movement alone (14,000) with the expense for the year. Rule to remember: The expense for the period is deduced from the movement in the allowance and the write-offs (IAS 24, para. 18).","es":""},"common_error":{"fr":"","en":"Confusing the cumulative allowance at the end of the period with the expense for the period.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_allowance","value":"20000","unit":"EUR"},{"id":"write_offs","value":"8000","unit":"EUR"},{"id":"reported_closing","value":"34000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cumulative allowance at the beginning of the year","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Receivables written off (allowance used)","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative allowance at the end of the year","es":""},"value":"34000","unit":"EUR"}],"steps":[{"id":"EXPENSE_CHARGE","label":{"fr":"","en":"Allowance expense for the year","es":""},"answer":22000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPENSE_CHARGE","meaning":{"fr":"","en":"Allowance expense for the year","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative allowance at the end of the year","es":""},"value":34000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative allowance at the beginning of the year","es":""},"value":20000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Receivables written off (allowance used)","es":""},"value":8000,"unit":"EUR"}],"result":22000,"unit":"EUR"}],"rationale":{"fr":"","en":"The expense for the period is deduced from the movement in the allowance and the write-offs (IAS 24, para. 18).","es":""},"references":["REF.IAS24.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000051","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CATEGORIES"],"dimension":"CALCULATION","context":"V1_QST.IAS24.000051","tested_point":"QST.IAS24.000051","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-categories"},"references":["IAS 24 §19"],"exercise":{"prompt":{"fr":"","en":"During the year, Bergame SA sold goods for {item_amount_1} to its subsidiary A, for {item_amount_2} to its subsidiary B and for {item_amount_n} to an associate. Calculate the total sales to be presented for the subsidiaries category.","es":""},"explanation":{"fr":"","en":"Approach: 150,000 + 90,000 = 240,000: the total for the subsidiaries category adds the two subsidiaries; the 60,000 to the associate belongs to another category. Transaction information is given separately for each category of related parties, including subsidiaries and associates (IAS 24, para. 19). Trap: grouping all related parties into a single total (300,000). Rule to remember: Totals are presented category by category, subsidiaries and associates separately (IAS 24, para. 19).","es":""},"common_error":{"fr":"","en":"Grouping all related parties into a single total.","es":""},"format":"CALCULATION","placeholders":[{"id":"item_amount_1","value":"150000","unit":"EUR"},{"id":"item_amount_2","value":"90000","unit":"EUR"},{"id":"item_amount_n","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Sales to subsidiary A","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Sales to subsidiary B","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Sales to the associate","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"CATEGORY_TOTAL","label":{"fr":"","en":"Total for the subsidiaries category","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CATEGORY_TOTAL","meaning":{"fr":"","en":"Total for the subsidiaries category","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales to subsidiary A","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Sales to subsidiary B","es":""},"value":90000,"unit":"EUR"}],"result":240000,"unit":"EUR"}],"rationale":{"fr":"","en":"Totals are presented category by category, subsidiaries and associates separately (IAS 24, para. 19).","es":""},"references":["REF.IAS24.19"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000052","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.CATEGORIES"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000052","tested_point":"QST.IAS24.000052","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-categories"},"references":["IAS 24 §19"],"exercise":{"prompt":{"fr":"","en":"An intern prepares the related party note of Roseau SA. Which of his presentation decisions is wrong?","es":""},"explanation":{"fr":"","en":"Transaction information is given separately for each category: the parent, entities with joint control or significant influence, subsidiaries, associates, joint ventures, key management personnel and other related parties (IAS 24, para. 19). A single total is therefore wrong. Trap: simplifying at the expense of separation by category. Rule to remember: Transactions with related parties are presented by category (IAS 24, para. 19).","es":""},"common_error":{"fr":"","en":"Grouping all related parties into a single total.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transactions with subsidiaries are presented separately from those with associates.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is right: the information is given separately for subsidiaries (c) and for associates (d) (IAS 24, para. 19). Rule to remember: Subsidiaries and associates are distinct categories (IAS 24, para. 19).","es":""}},{"id":"B","text":{"fr":"","en":"Transactions with the key management personnel of the entity or of its parent form a separate category.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is right: the key management personnel of the entity or of its parent is one of the categories to be presented separately (IAS 24, para. 19). Rule to remember: Key management personnel form a category of their own (IAS 24, para. 19).","es":""}},{"id":"C","text":{"fr":"","en":"Transactions with the parent appear in their own category.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is right: the parent is one of the categories to be presented separately (IAS 24, para. 19). Rule to remember: The parent is a distinct category (IAS 24, para. 19).","es":""}},{"id":"D","text":{"fr":"","en":"All related parties are grouped in a single total, to simplify the note.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000053","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.EXAMPLES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000053","tested_point":"QST.IAS24.000053","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-examples"},"references":["IAS 24 §21"],"exercise":{"prompt":{"fr":"","en":"Which of the following operations are examples of transactions to be disclosed when they take place with a related party? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Examples of transactions to be disclosed with a related party include purchases or sales of goods, of property and other assets, services received or rendered, leases, transfers of research and development, licence agreements, financing arrangements, guarantees or collateral and commitments depending on future events (IAS 24, para. 21). Trap: limiting transactions to sales and purchases of goods. Rule to remember: The notion of related party transaction goes beyond sales and purchases of goods (IAS 24, para. 21).","es":""},"common_error":{"fr":"","en":"Limiting transactions to sales and purchases of goods.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Purchases or sales of goods.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Services received or rendered.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A sale to an independent customer with no link to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"An operation with an independent third party is not a related party transaction: the examples concern transactions with a related party (IAS 24, para. 21). Rule to remember: The examples concern operations entered into with a related party (IAS 24, para. 21).","es":""}},{"id":"D","text":{"fr":"","en":"Guarantees or collateral given or received.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The payment of wages to operational staff who are not key management.","es":""},"correct":false,"feedback":{"fr":"","en":"Paying wages to operational staff is not a related party transaction cited among the examples: these examples concern operations with a related party (IAS 24, para. 21). Rule to remember: These examples concern operations with a related party (IAS 24, para. 21).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000054","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.EXAMPLES"],"dimension":"APPLICATION","context":"V1_QST.IAS24.000054","tested_point":"QST.IAS24.000054","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000008","section_id":"rule-examples"},"references":["IAS 24 §21"],"exercise":{"prompt":{"fr":"","en":"Cassis SA grants its subsidiary a licence to use its brand in exchange for a royalty and lends it funds. An accountant thinks that only purchases and sales of goods are to be disclosed. What should he bear in mind?","es":""},"explanation":{"fr":"","en":"Examples of transactions to be disclosed with a related party include transfers under licence agreements and financing arrangements (loans and equity contributions), alongside sales and purchases of goods (IAS 24, para. 21). The licence granted to the subsidiary and the loan are therefore to be disclosed. Trap: reducing transactions to sales and purchases of goods. Rule to remember: Licences and financing are related party transactions to be disclosed (IAS 24, para. 21).","es":""},"common_error":{"fr":"","en":"Limiting transactions to sales and purchases of goods.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transfers under licence agreements and financing arrangements are among the examples of transactions to be disclosed.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Purchases and sales of goods are the transactions to be disclosed, the other operations entered into with the subsidiary being considered outside the scope of disclosure.","es":""},"correct":false,"feedback":{"fr":"","en":"The list of examples also includes services, licences, financing and guarantees: it is not limited to goods (IAS 24, para. 21). Rule to remember: Transactions with a related party go beyond sales and purchases of goods (IAS 24, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"The loan is excluded, for lack of a transfer of goods; the licence is to be disclosed.","es":""},"correct":false,"feedback":{"fr":"","en":"Financing arrangements, loans included, are cited among the examples; the absence of a transfer of goods does not exclude them (IAS 24, para. 21). Rule to remember: Financing arrangements are transactions to be disclosed (IAS 24, para. 21).","es":""}},{"id":"D","text":{"fr":"","en":"The licence is to be disclosed only if it is granted free of charge.","es":""},"correct":false,"feedback":{"fr":"","en":"Transfers under licence agreements are cited among the examples, whether or not a royalty is paid (IAS 24, para. 21). Rule to remember: A licence is a transaction to be disclosed, with or without a royalty (IAS 24, para. 21).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000055","standard_id":"IAS24","concept_ids":["IAS24.TRANSACTIONS.ARMS_LENGTH"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000006","tested_point":"VG.IAS24.000006","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000009","section_id":"rule-arms"},"references":["IAS 24 §23"],"exercise":{"prompt":{"fr":"","en":"Every entity must state in its note that its transactions with related parties were made on terms equivalent to those of an arm's length transaction.","es":""},"explanation":{"fr":"","en":"The standard does not require a disclosure that related party transactions were made on terms equivalent to those of an arm's length transaction; such a statement is made only if those terms can be substantiated (IAS 24, para. 23). Trap: including this sentence out of habit. Rule to remember: The arm's length statement is not required and is made only if it can be substantiated (IAS 24, para. 23).","es":""},"common_error":{"fr":"","en":"Systematically stating that transactions are on arm's length terms.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000058","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS24.000007","tested_point":"VG.IAS24.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-exemption"},"references":["IAS 24 §25"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by a government may omit the disclosures about its transactions and balances with that government, and with the other entities that the same government controls or over which it has joint control or significant influence.","es":""},"explanation":{"fr":"","en":"The entity need not provide the IAS 24 paragraph 18 disclosures about transactions and balances, including commitments, with a government that has control, joint control or significant influence over it, nor with another entity that is a related party because the same government has control, joint control or significant influence over both (IAS 24, para. 25). Trap: believing the exemption is total; it is partial. Rule to remember: The partial exemption covers transactions and balances with the government and entities related because of the same government (IAS 24, para. 25).","es":""},"common_error":{"fr":"","en":"Believing that the exemption removes all disclosure about the government and its entities.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000059","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION"],"dimension":"APPLICATION","context":"V1_VG.IAS24.000007","tested_point":"VG.IAS24.000007","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-exemption"},"references":["IAS 24 §25"],"exercise":{"prompt":{"fr":"","en":"Étoile SA is controlled by the government. It sold services for 2,000,000 to the government, for 1,500,000 to a state-owned company also controlled by the government and for 900,000 to an independent private customer. Which transactions benefit from the partial exemption?","es":""},"explanation":{"fr":"","en":"The entity need not provide the IAS 24 paragraph 18 disclosures about transactions and balances with the government that controls it and with other entities related because the same government has control, joint control or significant influence over both (IAS 24, para. 25). The sales of 2,000,000 and 1,500,000 are covered; the 900,000 sale to an independent private customer is not covered by the exemption. Trap: extending the exemption to all counterparties. Rule to remember: The partial exemption covers the government and entities related because of the same government (IAS 24, para. 25).","es":""},"common_error":{"fr":"","en":"Believing that the exemption removes all disclosure about the government and its entities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The sales to the government itself, not those to the other state-owned company, those falling under the general disclosure regime.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption also covers other entities related because the same government has control, joint control or significant influence over both (IAS 24, para. 25). Rule to remember: The exemption covers the government and entities related because of the same government (IAS 24, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"The sales to the government and to the other state-owned company, but not the one to the independent private customer.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All three sales, since Étoile is controlled by the government.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption does not extend to any counterparty: it concerns the government and entities related because of the same government, not an independent private customer (IAS 24, para. 25). Rule to remember: The exemption is limited to transactions with the government and its related entities (IAS 24, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"The sales whose amount is small relative to Étoile's total sales.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption rests on the nature of the counterparty (the government and entities related because of the same government) and not on the amount of the sales (IAS 24, para. 25). Rule to remember: The counterparty, not the amount, determines the scope of the exemption (IAS 24, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000060","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.EXEMPTION_LIMITS"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000060","tested_point":"QST.IAS24.000060","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-limits"},"references":["IAS 24 §25"],"exercise":{"prompt":{"fr":"","en":"Marmara SA is controlled by the government. It paid 700,000 to its chief executive, a member of key management personnel, for consulting services separate from his compensation. Which reasoning of the accountant is wrong?","es":""},"explanation":{"fr":"","en":"The partial exemption covers transactions and balances with the government that has control, joint control or significant influence, and with other entities related because of the same government; it does not extend to individuals, and transactions with a member of key management personnel remain to be disclosed (IAS 24, para. 25). The 700,000 payment is therefore to be disclosed. Trap: extending the exemption to transactions with a manager of the entity. Rule to remember: The exemption does not extend to transactions with individuals, key managers included (IAS 24, para. 25).","es":""},"common_error":{"fr":"","en":"Extending the exemption to transactions with a manager of the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transactions with the government that controls Marmara may remain outside the IAS 24 paragraph 18 disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: the partial exemption covers transactions and balances with the government that has control (IAS 24, para. 25). Rule to remember: Transactions with the controlling government fall within the exemption (IAS 24, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"Another state-owned company controlled by the same government is also within the exemption.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: entities related because the same government has control, joint control or significant influence over both are covered (IAS 24, para. 25). Rule to remember: The exemption covers entities related because of the same government (IAS 24, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"The payment of 700,000 to the chief executive is covered by the exemption, since Marmara is controlled by the government.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exemption does not extend to transactions with individuals, such as key management personnel.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning is right: the exemption does not extend to individuals (IAS 24, para. 25). Rule to remember: Transactions with an individual, key management included, remain to be disclosed (IAS 24, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000061","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"CALCULATION","context":"V1_VG.IAS24.000008","tested_point":"VG.IAS24.000008","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"Orme SA, controlled by the government, made total sales of {total_transactions}, of which {transactions_with_gov_group} with the government and the entities it controls. It applies the partial exemption and wants to give an indication of the extent of these sales. Calculate the proportion of sales made with the government and its entities.","es":""},"explanation":{"fr":"","en":"Approach: 18,000,000 ÷ 60,000,000 = 0.30, i.e. 30%. Among the information provided for transactions with the government and government-related entities (IAS 24, para. 26), the entity gives, for collectively significant transactions, a qualitative or quantitative indication of their extent, for example a proportion of sales. Case convention: the percentage illustrates the presentation; the standard imposes neither a materiality threshold nor a single format. Trap: dividing by the amount with the government instead of the total. Rule to remember: The extent of collectively significant transactions may be indicated by a proportion, with no threshold imposed (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Applying the exemption without disclosing the government's name, the nature of the relationship and the significant transactions.","es":""},"format":"CALCULATION","placeholders":[{"id":"transactions_with_gov_group","value":"18000000","unit":"EUR"},{"id":"total_transactions","value":"60000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Sales with the government and its entities","es":""},"value":"18000000","unit":"EUR"},{"label":{"fr":"","en":"Total sales","es":""},"value":"60000000","unit":"EUR"}],"steps":[{"id":"SHARE_PERCENTAGE","label":{"fr":"","en":"Proportion of sales with the government and its entities","es":""},"answer":30,"tolerance":0,"unit":"PERCENT"}],"formula":{"lines":[{"step":"SHARE_PERCENTAGE","meaning":{"fr":"","en":"Proportion of sales with the government and its entities","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales with the government and its entities","es":""},"value":18000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total sales","es":""},"value":60000000,"unit":"EUR"}],"result":30,"unit":"PERCENT"}],"rationale":{"fr":"","en":"The extent of collectively significant transactions may be indicated by a proportion, with no threshold imposed (IAS 24, para. 26).","es":""},"references":["REF.IAS24.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000062","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000062","tested_point":"QST.IAS24.000062","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"An entity controlled by the government applies the partial exemption. Which disclosures must it nevertheless provide? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"When applying the exemption, the entity discloses the name of the government and the nature of its relationship with it, then, among the information provided for transactions with the government and government-related entities, the nature and amount of each individually significant transaction and, for other collectively significant transactions, a qualitative or quantitative indication of their extent (IAS 24, para. 26). Trap: applying the exemption without disclosing the government's name, the nature of the relationship and the significant transactions. Rule to remember: The exemption comes with the government's name, the nature of the relationship and information on significant transactions (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Applying the exemption without disclosing the government's name, the nature of the relationship and the significant transactions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The name of the government, the nature of the relationship being covered by the exemption.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is partial: the entity provides at least the name of the government, the nature of the relationship and information on significant transactions (IAS 24, para. 26). Rule to remember: Applying the exemption does not remove these disclosures (IAS 24, para. 26).","es":""}},{"id":"B","text":{"fr":"","en":"The name of the government and the nature of its relationship with the entity (control, joint control or significant influence).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The detail of the balances with each of the entities related to the government, as if there were no exemption.","es":""},"correct":false,"feedback":{"fr":"","en":"This detailed information is precisely what the exemption relieves; the entity provides instead the IAS 24 paragraph 26 disclosures (IAS 24, para. 25). Rule to remember: The exemption replaces full detail with targeted information (IAS 24, para. 26).","es":""}},{"id":"D","text":{"fr":"","en":"The nature and amount of each individually significant transaction.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An indication of the proportion of transactions, without naming the government or stating the nature of the relationship.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication of extent does not remove the need to name the government and state the nature of its relationship with the entity (IAS 24, para. 26). Rule to remember: The government's name and the nature of the relationship are disclosed when the exemption is applied (IAS 24, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000063","standard_id":"IAS24","concept_ids":["IAS24.GOVERNMENT.DISCLOSURES"],"dimension":"CALCULATION","context":"V1_VG.IAS24.000008","tested_point":"VG.IAS24.000008","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000010","section_id":"rule-disclosures"},"references":["IAS 24 §26"],"exercise":{"prompt":{"fr":"","en":"Cèdre Énergie, controlled by the government, made total purchases of {total_transactions}, of which 15,000,000 from an independent private supplier. Purchases from the government (12,000,000) and from another entity it controls (8,000,000) total {transactions_with_gov_group}. Calculate the proportion of purchases made with the government and its entities, to be disclosed as the extent of these transactions.","es":""},"explanation":{"fr":"","en":"Approach: 12,000,000 + 8,000,000 = 20,000,000; 20,000,000 ÷ 80,000,000 = 0.25, i.e. 25%. The 15,000,000 from the independent private supplier is in the total but not in the numerator, that supplier not being a government entity. Among the information provided for transactions with the government and government-related entities (IAS 24, para. 26), the entity gives, for collectively significant transactions, a qualitative or quantitative indication of their extent, such as the proportion of purchases. Case convention: the percentage illustrates the presentation, with no threshold imposed. Trap: including the private supplier in the numerator. Rule to remember: The collective extent is measured on transactions with the government and its entities, relative to the total (IAS 24, para. 26).","es":""},"common_error":{"fr":"","en":"Applying the exemption without disclosing the government's name, the nature of the relationship and the significant transactions.","es":""},"format":"CALCULATION","placeholders":[{"id":"transactions_with_gov_group","value":"20000000","unit":"EUR"},{"id":"total_transactions","value":"80000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchases from the government and its entities","es":""},"value":"20000000","unit":"EUR"},{"label":{"fr":"","en":"Total purchases","es":""},"value":"80000000","unit":"EUR"}],"steps":[{"id":"SHARE_PERCENTAGE","label":{"fr":"","en":"Proportion of purchases from the government and its entities","es":""},"answer":25,"tolerance":0,"unit":"PERCENT"}],"formula":{"lines":[{"step":"SHARE_PERCENTAGE","meaning":{"fr":"","en":"Proportion of purchases from the government and its entities","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchases from the government and its entities","es":""},"value":20000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total purchases","es":""},"value":80000000,"unit":"EUR"}],"result":25,"unit":"PERCENT"}],"rationale":{"fr":"","en":"The collective extent is measured on transactions with the government and its entities, relative to the total (IAS 24, para. 26).","es":""},"references":["REF.IAS24.26"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS24.000065","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IFRS10"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000065","tested_point":"QST.IAS24.000065","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000001","section_id":"rule-investment-entity"},"references":["IAS 24 §4"],"exercise":{"prompt":{"fr":"","en":"Altair Fonds is an investment entity that measures its subsidiary Altair Opérations at fair value through profit or loss. How are transactions and balances between Altair Fonds and this subsidiary treated with regard to intragroup elimination?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, intragroup transactions and balances with related parties are eliminated, except between an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24, para. 4). Altair Fonds' transactions with its subsidiary are therefore not eliminated. Trap: eliminating all information about an investment entity's subsidiaries. Rule to remember: The elimination exception concerns investment entities and their subsidiaries measured at fair value through profit or loss (IAS 24, para. 4).","es":""},"common_error":{"fr":"","en":"Eliminating all information about an investment entity's subsidiaries.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are eliminated like an ordinary intragroup transaction, the subsidiary belonging to the same group.","es":""},"correct":false,"feedback":{"fr":"","en":"Elimination of intragroup transactions has an exception for transactions and balances between an investment entity and its subsidiaries measured at fair value through profit or loss (IAS 24, para. 4). Rule to remember: These transactions and balances are not eliminated (IAS 24, para. 4).","es":""}},{"id":"B","text":{"fr":"","en":"They are presented nowhere, since they concern entities of the same group.","es":""},"correct":false,"feedback":{"fr":"","en":"Transactions and balances with other group entities are presented in the entity's financial statements; the elimination exception does not remove them (IAS 24, para. 4). Rule to remember: The exception removes the elimination, not the presentation (IAS 24, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"They are eliminated if their amount is below a threshold set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception rests on the nature of the entities (investment entity and subsidiary measured at fair value through profit or loss), not on an amount threshold (IAS 24, para. 4). Rule to remember: The exception concerns the status of the entities, not the amount (IAS 24, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"They are not eliminated: the elimination exception targets precisely these transactions and balances.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000066","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IAS28_IFRS11"],"dimension":"APPLICATION","context":"V1_QST.IAS24.000066","tested_point":"QST.IAS24.000066","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000005","section_id":"rule-standards"},"references":["IAS 24 §9"],"exercise":{"prompt":{"fr":"","en":"Avenir SA holds an interest qualified as an associate under IAS 28 in Lumière SA and exercises, with a partner, joint control qualified as a joint venture under IFRS 11 over Prisme SARL. Avenir prepares financial statements. How are Lumière and Prisme treated under IAS 24?","es":""},"explanation":{"fr":"","en":"An entity is related to another when it is an associate or a joint venture of that other entity (IAS 24, para. 9). The qualifications as associate (IAS 28) and joint venture (IFRS 11) are here case data; it follows that Lumière and Prisme are both related parties of Avenir. Trap: treating one of the two differently for related party purposes, or seeing the question as foreign to IAS 24. Rule to remember: The entity's associate and joint venture are its related parties (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Treating a joint operation as a joint venture for related party purposes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Lumière, an associate, and Prisme, a joint venture, are both related parties of Avenir.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Prisme is a related party, but the associate is not.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's associate is also a related party, like the joint venture (IAS 24, para. 9). Rule to remember: The entity's associate and joint venture are related parties (IAS 24, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Lumière is a related party, but the joint venture is not.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's joint venture is also a related party (IAS 24, para. 9). Rule to remember: The entity's associate and joint venture are related parties (IAS 24, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Neither of them, their qualification falling under standards other than IAS 24, so that they do not appear in Avenir's related party note.","es":""},"correct":false,"feedback":{"fr":"","en":"Once the qualification is given, here by the case, IAS 24 retains the associate and the joint venture as related parties (IAS 24, para. 9). Rule to remember: Belonging to these categories is enough to make the entity related (IAS 24, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000067","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IAS19"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS24.000067","tested_point":"QST.IAS24.000067","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-links"},"references":["IAS 24 §9","IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"The Lin group funds a post-employment benefit plan, measured under IAS 19, for the benefit of the employees of the entity Lin Industrie. Which statements are right for Lin Industrie? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A post-employment benefit plan for the benefit of the entity's employees is a related party of that entity (IAS 24, para. 9), and post-employment benefits are one of the five categories of key management personnel compensation (IAS 24, para. 17). Measurement under IAS 19 is a case datum that affects neither conclusion. Trap: ignoring group plans when identifying related parties. Rule to remember: The plan for the benefit of the entity's employees is related to it, and post-employment benefits are a category of compensation (IAS 24, para. 9).","es":""},"common_error":{"fr":"","en":"Ignoring group plans when identifying related parties.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plan is not a related party, because its measurement falls under IAS 19.","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring the plan under IAS 19 has no effect on its status as a related party, defined by IAS 24 (IAS 24, para. 9). Rule to remember: The plan for the benefit of the entity's employees is a related party, whichever standard measures it (IAS 24, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"The plan is a related party of Lin Industrie, because it is for the benefit of its employees.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Post-employment benefits are excluded from key management personnel compensation, because they are paid after departure.","es":""},"correct":false,"feedback":{"fr":"","en":"Post-employment benefits are among the five categories of compensation to be presented, even though they are paid after departure (IAS 24, para. 17). Rule to remember: Post-employment benefits are a category of key management compensation (IAS 24, para. 17).","es":""}},{"id":"D","text":{"fr":"","en":"Post-employment benefits of key management personnel form a separate category of compensation to be presented.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS24.000068","standard_id":"IAS24","concept_ids":["IAS24.INTERACTIONS.IFRS2"],"dimension":"ANALYSIS","context":"V1_QST.IAS24.000068","tested_point":"QST.IAS24.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS24","lesson_id":"LS.IAS24.000007","section_id":"rule-links"},"references":["IAS 24 §17"],"exercise":{"prompt":{"fr":"","en":"For the note on key management personnel compensation of Genêt SA, which has granted share options to its managers, an analyst puts forward four statements. Which one is wrong?","es":""},"explanation":{"fr":"","en":"Key management personnel compensation is disclosed in total and for each of the five categories, including share-based payment (IAS 24, para. 17). The options granted to managers are therefore included, whether or not they are settled in cash. Trap: excluding share-based payment from key management personnel compensation. Rule to remember: Share-based payment is one of the five categories of compensation to be presented (IAS 24, para. 17).","es":""},"common_error":{"fr":"","en":"Excluding share-based payment from key management personnel compensation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Share-based payment is one of the five categories of compensation to be presented.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: share-based payment is one of the five categories cited (IAS 24, para. 17). Rule to remember: Share-based payment is a category of compensation (IAS 24, para. 17).","es":""}},{"id":"B","text":{"fr":"","en":"The options granted to managers are excluded from the compensation disclosed, because they are not paid in cash.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Total key management personnel compensation includes the share-based payment category, like those of short-term benefits and post-employment benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: the total is disclosed together with each of the five categories, including share-based payment (IAS 24, para. 17). Rule to remember: The total covers the five categories (IAS 24, para. 17).","es":""}},{"id":"D","text":{"fr":"","en":"The options granted are presented in this category and not with short-term benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is right: each category is presented distinctly, share-based payment having its own (IAS 24, para. 17). Rule to remember: Each category of compensation is presented separately (IAS 24, para. 17).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS24.000001":"IAS 24: purpose, scope and intragroup information — Understand: normal relationships that can still weigh on the accounts","LX.IAS24.000002":"IAS 24: purpose, scope and intragroup information — The rule: what the standard covers and where it applies","LX.IAS24.000003":"IAS 24: purpose, scope and intragroup information — The rule: intragroup items","LX.IAS24.000004":"IAS 24: purpose, scope and intragroup information — The rule: what the standard covers and where it applies","LX.IAS24.000005":"IAS 24: purpose, scope and intragroup information — The rule: intragroup items","LX.IAS24.000006":"IAS 24: purpose, scope and intragroup information — The investment entity exception and the link with IFRS 10","LX.IAS24.000007":"IAS 24: purpose, scope and intragroup information — Professional judgement: delimiting what is to be presented","LX.IAS24.000008":"Who is a related party? Persons, close family, key management and transactions — The rule: the related party \"person\"","LX.IAS24.000009":"Who is a related party? Persons, close family, key management and transactions — The rule: the related party \"person\"","LX.IAS24.000010":"Who is a related party? Persons, close family, key management and transactions — The rule: the related party \"person\"","LX.IAS24.000011":"Who is a related party? Persons, close family, key management and transactions — The rule: close family","LX.IAS24.000012":"Who is a related party? Persons, close family, key management and transactions — The rule: close family","LX.IAS24.000013":"Who is a related party? Persons, close family, key management and transactions — The rule: key management personnel","LX.IAS24.000014":"Who is a related party? Persons, close family, key management and transactions — The rule: a related party transaction","LX.IAS24.000015":"Who is a related party? Persons, close family, key management and transactions — The rule: key management personnel","LX.IAS24.000016":"Who is a related party? Persons, close family, key management and transactions — The rule: a related party transaction","LX.IAS24.000017":"Who is a related party? Persons, close family, key management and transactions — Control, joint control, significant influence: notions referred elsewhere","LX.IAS24.000018":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: entities of the same group","LX.IAS24.000019":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: entities of the same group","LX.IAS24.000020":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the associate and the joint venture","LX.IAS24.000021":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the associate and the joint venture","LX.IAS24.000022":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the entity controlled by a related person","LX.IAS24.000023":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: entities of the same group","LX.IAS24.000024":"Related entities: group, associates, joint ventures and entities controlled by a person — Subsidiaries of an associate or joint venture","LX.IAS24.000025":"Related entities: group, associates, joint ventures and entities controlled by a person — Joint ventures of the same third party","LX.IAS24.000026":"Related entities: group, associates, joint ventures and entities controlled by a person — Joint ventures of the same third party","LX.IAS24.000027":"Related entities: group, associates, joint ventures and entities controlled by a person — Professional judgement: mapping the group","LX.IAS24.000028":"Substance of the relationship, post-employment plans and management entities — The rule: substance over form","LX.IAS24.000029":"Substance of the relationship, post-employment plans and management entities — The rule: substance over form","LX.IAS24.000030":"Substance of the relationship, post-employment plans and management entities — The rule: substance over form","LX.IAS24.000031":"Substance of the relationship, post-employment plans and management entities — The post-employment benefit plan","LX.IAS24.000032":"Substance of the relationship, post-employment plans and management entities — The management entity","LX.IAS24.000033":"Substance of the relationship, post-employment plans and management entities — Professional judgement: justifying a conclusion on substance","LX.IAS24.000034":"What does not, by itself, make a related party — The rule: normal dealings and economic dependence","LX.IAS24.000035":"What does not, by itself, make a related party — The rule: normal dealings and economic dependence","LX.IAS24.000036":"What does not, by itself, make a related party — The rule: normal dealings and economic dependence","LX.IAS24.000037":"What does not, by itself, make a related party — The rule: venturers among themselves","LX.IAS24.000038":"What does not, by itself, make a related party — The rule: the common director or manager","LX.IAS24.000039":"What does not, by itself, make a related party — The rule: the common director or manager","LX.IAS24.000040":"What does not, by itself, make a related party — Joint ventures and associates: the reference to IFRS 11 and IAS 28","LX.IAS24.000041":"Disclosure about the parent and the ultimate controlling party — The rule: naming the parent and the ultimate controlling party","LX.IAS24.000042":"Disclosure about the parent and the ultimate controlling party — The rule: naming the parent and the ultimate controlling party","LX.IAS24.000043":"Disclosure about the parent and the ultimate controlling party — The rule: the next senior parent that publishes consolidated statements","LX.IAS24.000044":"Disclosure about the parent and the ultimate controlling party — The rule: naming the parent and the ultimate controlling party","LX.IAS24.000045":"Disclosure about the parent and the ultimate controlling party — Why disclose control even without transactions","LX.IAS24.000046":"Disclosure about the parent and the ultimate controlling party — Why disclose control even without transactions","LX.IAS24.000047":"Disclosure about the parent and the ultimate controlling party — The rule: the next senior parent that publishes consolidated statements","LX.IAS24.000048":"Key management personnel compensation — The rule: the total and the five categories","LX.IAS24.000049":"Key management personnel compensation — Numeric example: Quelvane's total key management compensation","LX.IAS24.000050":"Key management personnel compensation — Numeric example: Quelvane's total key management compensation","LX.IAS24.000051":"Key management personnel compensation — The rule: the total and the five categories","LX.IAS24.000052":"Key management personnel compensation — The rule: the total and the five categories","LX.IAS24.000053":"Key management personnel compensation — Beyond compensation: other transactions with managers","LX.IAS24.000054":"Key management personnel compensation — The rule: the total and the five categories","LX.IAS24.000055":"Key management personnel compensation — The management entity: the relief","LX.IAS24.000056":"Key management personnel compensation — The links with IAS 19 and IFRS 2","LX.IAS24.000057":"Key management personnel compensation — Professional judgement: building the key management compensation file","LX.IAS24.000058":"Transactions and balances: what must be disclosed — The rule: the minimum content","LX.IAS24.000059":"Transactions and balances: what must be disclosed — Numeric example: Ostrel's receivable from its subsidiary","LX.IAS24.000060":"Transactions and balances: what must be disclosed — Numeric example: Ostrel's receivable from its subsidiary","LX.IAS24.000061":"Transactions and balances: what must be disclosed — Numeric example: Ostrel's receivable from its subsidiary","LX.IAS24.000062":"Transactions and balances: what must be disclosed — The rule: the minimum content","LX.IAS24.000063":"Transactions and balances: what must be disclosed — The rule: disclosure by related party category","LX.IAS24.000064":"Transactions and balances: what must be disclosed — The rule: examples of transactions to disclose","LX.IAS24.000065":"Transactions and balances: what must be disclosed — The rule: examples of transactions to disclose","LX.IAS24.000066":"Transactions and balances: what must be disclosed — The rule: the minimum content","LX.IAS24.000067":"Transactions and balances: what must be disclosed — Numeric example: Ostrel's receivable from its subsidiary","LX.IAS24.000068":"Arm's length statements and aggregation — The rule: substantiate or refrain","LX.IAS24.000069":"Arm's length statements and aggregation — The rule: substantiate or refrain","LX.IAS24.000070":"Arm's length statements and aggregation — The rule: substantiate or refrain","LX.IAS24.000071":"Arm's length statements and aggregation — Aggregation: grouping or separating","LX.IAS24.000072":"Arm's length statements and aggregation — Aggregation: grouping or separating","LX.IAS24.000073":"Arm's length statements and aggregation — Professional judgement: documenting arm's length terms and aggregation","LX.IAS24.000074":"Government-related entities: the partial exemption — The rule: the partial exemption","LX.IAS24.000075":"Government-related entities: the partial exemption — The rule: the disclosure to keep","LX.IAS24.000076":"Government-related entities: the partial exemption — Numeric example: the extent of Brindal's transactions with the government and its entities","LX.IAS24.000077":"Government-related entities: the partial exemption — Numeric example: the extent of Brindal's transactions with the government and its entities","LX.IAS24.000078":"Government-related entities: the partial exemption — The rule: the partial exemption","LX.IAS24.000079":"Government-related entities: the partial exemption — The rule: the disclosure to keep","LX.IAS24.000080":"Government-related entities: the partial exemption — The rule: the disclosure to keep","LX.IAS24.000081":"Government-related entities: the partial exemption — The limits of the exemption","LX.IAS24.000082":"Government-related entities: the partial exemption — Judgement on the extent of disclosure","LX.IAS24.000083":"Government-related entities: the partial exemption — Professional judgement: applying the exemption and reasoning the extent","LX.IAS24.000084":"IAS 24: purpose, scope and intragroup information — The rule: intragroup items","LX.IAS24.000085":"Key management personnel compensation — The links with IAS 19 and IFRS 2","QST.IAS24.000001":"IAS 24: purpose, scope and intragroup information — The rule: the objective of the standard","QST.IAS24.000002":"IAS 24: purpose, scope and intragroup information — The rule: the objective of the standard","QST.IAS24.000003":"IAS 24: purpose, scope and intragroup information — The rule: what the standard covers and where it applies","QST.IAS24.000004":"IAS 24: purpose, scope and intragroup information — The rule: what the standard covers and where it applies","QST.IAS24.000005":"IAS 24: purpose, scope and intragroup information — The rule: intragroup items","QST.IAS24.000006":"Who is a related party? Persons, close family, key management and transactions — The rule: the related party \"person\"","QST.IAS24.000007":"Who is a related party? Persons, close family, key management and transactions — The rule: the related party \"person\"","QST.IAS24.000008":"Who is a related party? Persons, close family, key management and transactions — The rule: close family","QST.IAS24.000010":"Who is a related party? Persons, close family, key management and transactions — The rule: key management personnel","QST.IAS24.000011":"Who is a related party? Persons, close family, key management and transactions — The rule: key management personnel","QST.IAS24.000012":"Who is a related party? Persons, close family, key management and transactions — The rule: a related party transaction","QST.IAS24.000013":"Who is a related party? Persons, close family, key management and transactions — The rule: a related party transaction","QST.IAS24.000014":"Who is a related party? Persons, close family, key management and transactions — Control, joint control, significant influence: notions referred elsewhere","QST.IAS24.000015":"Who is a related party? Persons, close family, key management and transactions — Control, joint control, significant influence: notions referred elsewhere","QST.IAS24.000016":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: entities of the same group","QST.IAS24.000017":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: entities of the same group","QST.IAS24.000018":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the associate and the joint venture","QST.IAS24.000019":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the associate and the joint venture","QST.IAS24.000020":"Related entities: group, associates, joint ventures and entities controlled by a person — Joint ventures of the same third party","QST.IAS24.000021":"Substance of the relationship, post-employment plans and management entities — The post-employment benefit plan","QST.IAS24.000022":"Related entities: group, associates, joint ventures and entities controlled by a person — The rule: the entity controlled by a related person","QST.IAS24.000024":"Substance of the relationship, post-employment plans and management entities — The management entity","QST.IAS24.000025":"Related entities: group, associates, joint ventures and entities controlled by a person — Subsidiaries of an associate or joint venture","QST.IAS24.000026":"Substance of the relationship, post-employment plans and management entities — The rule: substance over form","QST.IAS24.000028":"What does not, by itself, make a related party — The rule: the common director or manager","QST.IAS24.000029":"What does not, by itself, make a related party — The rule: the common director or manager","QST.IAS24.000030":"What does not, by itself, make a related party — The rule: venturers among themselves","QST.IAS24.000031":"What does not, by itself, make a related party — The rule: venturers among themselves","QST.IAS24.000032":"What does not, by itself, make a related party — The rule: normal dealings and economic dependence","QST.IAS24.000034":"Disclosure about the parent and the ultimate controlling party — The rule: naming the parent and the ultimate controlling party","QST.IAS24.000035":"Disclosure about the parent and the ultimate controlling party — The rule: naming the parent and the ultimate controlling party","QST.IAS24.000036":"Disclosure about the parent and the ultimate controlling party — The rule: the next senior parent that publishes consolidated statements","QST.IAS24.000037":"Disclosure about the parent and the ultimate controlling party — The rule: the next senior parent that publishes consolidated statements","QST.IAS24.000038":"Disclosure about the parent and the ultimate controlling party — Why disclose control even without transactions","QST.IAS24.000039":"Disclosure about the parent and the ultimate controlling party — Why disclose control even without transactions","QST.IAS24.000040":"Key management personnel compensation — The rule: the total and the five categories","QST.IAS24.000042":"Key management personnel compensation — The rule: the total and the five categories","QST.IAS24.000044":"Key management personnel compensation — Beyond compensation: other transactions with managers","QST.IAS24.000045":"Key management personnel compensation — Beyond compensation: other transactions with managers","QST.IAS24.000046":"Transactions and balances: what must be disclosed — The rule: the minimum content","QST.IAS24.000048":"Transactions and balances: what must be disclosed — The rule: allowances and the expense for the period","QST.IAS24.000049":"Transactions and balances: what must be disclosed — The rule: allowances and the expense for the period","QST.IAS24.000051":"Transactions and balances: what must be disclosed — The rule: disclosure by related party category","QST.IAS24.000052":"Transactions and balances: what must be disclosed — The rule: disclosure by related party category","QST.IAS24.000053":"Transactions and balances: what must be disclosed — The rule: examples of transactions to disclose","QST.IAS24.000054":"Transactions and balances: what must be disclosed — The rule: examples of transactions to disclose","QST.IAS24.000055":"Arm's length statements and aggregation — The rule: substantiate or refrain","QST.IAS24.000058":"Government-related entities: the partial exemption — The rule: the partial exemption","QST.IAS24.000059":"Government-related entities: the partial exemption — The rule: the partial exemption","QST.IAS24.000060":"Government-related entities: the partial exemption — The limits of the exemption","QST.IAS24.000061":"Government-related entities: the partial exemption — The rule: the disclosure to keep","QST.IAS24.000062":"Government-related entities: the partial exemption — The rule: the disclosure to keep","QST.IAS24.000063":"Government-related entities: the partial exemption — The rule: the disclosure to keep","QST.IAS24.000065":"IAS 24: purpose, scope and intragroup information — The investment entity exception and the link with IFRS 10","QST.IAS24.000066":"What does not, by itself, make a related party — Joint ventures and associates: the reference to IFRS 11 and IAS 28","QST.IAS24.000067":"Key management personnel compensation — The links with IAS 19 and IFRS 2","QST.IAS24.000068":"Key management personnel compensation — The links with IAS 19 and IFRS 2"}}