Question bank — IAS 24 — Related Party Disclosures
68 questions in FR/EN/ES, scored by the real scoring engine.
Purpose of the standard2 questions
Scope of application2 questions
- A parent that prepares separate financial statements must also provide in them the related party disclosures required by IAS 24.True / falseL1
- The management accountant of Lormont SA lists the work needed for the related party note. Which list matches what the standard helps to determine?Single choiceL2
Intragroup items and consolidated statements1 question
Related party: the person2 questions
- Mireille Dubreuil has significant influence over Corvan SA, which prepares financial statements. Is Mireille a related party of Corvan?Single choiceL1
- Cormoran SA prepares financial statements. Which of the following persons are related parties of Cormoran? More than one answer is possible.Multiple choiceL3
Close members of the family2 questions
- A person's close family is limited to their children, spouse or partner, the children of the spouse or partner and their dependants.True / falseL1
- Marianne Orsini, finance director of the Sorel group, is a member of its key management personnel. Her father, a 72-year-old retiree, controls the company Vireo, a machinery supplier of Sorel. Marianne and her father live in different towns, meet a few times a year and have no financial relationship. Write a note determining whether the father is a close member of Marianne's family and whether Vireo is a related party of Sorel, separating case facts, rule and judgement.JudgmentL4
Key management personnel2 questions
Related party transaction2 questions
- 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.True / falseL1Variant
- 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?Single choiceL2Variant
Control, joint control, significant influence2 questions
- 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.Multiple choiceL1
- 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?Single choiceL2
Entities of the same group2 questions
- Two subsidiaries of the same parent company are related parties of each other, since they belong to the same group.True / falseL1Variant
- 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?Single choiceL2Variant
Associate and joint venture2 questions
Joint ventures of the same third party1 question
Post-employment benefit plan1 question
Entity controlled by a related person2 questions
- 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?Single choiceL2
- Gilles Vidal is chief executive and a member of the key management personnel of Orion SA. His wife holds 55% of the voting rights of Galéa SARL, which leases warehouses to Orion. A shareholders' agreement gives another shareholder, who holds 30%, a veto over Galéa's strategic decisions. Write a note determining whether Galéa is a related party of Orion, separating case facts, rule and judgement.JudgmentL4
Management entity1 question
Subsidiaries of an associate or joint venture1 question
Substance over form2 questions
- To assess each possible related party relationship, the entity relies on the legal form of the relationship.True / falseL1
- Sylvain Aubert is chief executive of Brisa SA and a member of its key management personnel. The shares of Nautis, a supplier of Brisa, are registered in the name of his sister-in-law; in practice, Sylvain gives Nautis its management instructions and signs its contracts. Write a note determining whether Nautis should be examined as a possible related party of Brisa, separating case facts, rule and judgement.JudgmentL3
Common director or manager2 questions
- Two entities are related parties of each other as soon as they have a director in common.True / falseL1Variant
- 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?Single choiceL2Variant
Venturers among themselves2 questions
- 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?Single choiceL1Variant
- 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?Single choiceL2Variant
Normal dealings and economic dependence2 questions
- 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.Multiple choiceL2
- Textilia SA makes 62% of its sales through the distributor Moda. Moda imposes its pricing terms and may restrict Textilia's commercial freedom of action; it holds no shares in Textilia and sits on none of its bodies. Write a note determining whether Moda is a related party of Textilia, separating case facts, rule and judgement.JudgmentL3
Disclosure about the parent and ultimate control2 questions
- An entity discloses its relationships with its parent and with its subsidiaries, whether or not it entered into transactions with them during the year.True / falseL1Variant
- 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?Single choiceL2Variant
Next most senior parent that publishes2 questions
- 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?Single choiceL2
- 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?Single choiceL3
Why disclose control without transactions2 questions
Key management personnel compensation3 questions
- 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.Multiple choiceL1
- Tilleul SA recognises for the year the short-term benefits of its key management personnel, amounting to …. They remain payable at year-end. Post the expense entry (case convention, IAS 24 requires no entry).Journal entryL2
- For the year, the key management personnel of Platane SA received: short-term benefits …; post-employment benefits …; other long-term benefits …; termination benefits …; 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.CalculationL3
Relief for the management entity1 question
Other transactions with managers2 questions
- 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?Single choiceL2
- 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.Multiple choiceL3
Minimum content of the disclosure2 questions
- 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.Multiple choiceL1
- Aubier SA sells goods on credit to its subsidiary for …. In its separate financial statements, it records the sale. Post the entry (case convention, IAS 24 requires no entry).Journal entryL2
Allowances and expense for the period3 questions
- At year-end, Sorbier SA has a gross receivable of … from its subsidiary, against which it has recognised an allowance of …. Calculate the net balance of the receivable from the related party.CalculationL2
- On Mélèze SA's receivables from related parties, the cumulative allowance is … at the beginning and … at the end of the year. During the year, … 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.CalculationL3
- At year-end, Frêne SA estimates at … the additional allowance to be recognised on the receivable held from its subsidiary. Post the allowance entry (case convention, IAS 24 requires no entry).Journal entryL2
Disclosure by related party category2 questions
- During the year, Bergame SA sold goods for … to its subsidiary A, for … to its subsidiary B and for … to an associate. Calculate the total sales to be presented for the subsidiaries category.CalculationL3
- An intern prepares the related party note of Roseau SA. Which of his presentation decisions is wrong?Single choiceL2
Examples of transactions to disclose2 questions
- 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.Multiple choiceL1
- 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?Single choiceL2
Arm's length statement2 questions
- 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.True / falseL2Variant
- The management of Pivoine SA wants to write in the note: "All transactions with related parties were made on normal market terms." Its only basis is that prices were set by management using its knowledge of the market. In addition, the margin earned on sales to a subsidiary is 4 points lower than on sales to third parties, with no documented explanation. Write a note concluding on whether this sentence is appropriate, separating case facts, rule and judgement.JudgmentL4Variant
Aggregation of similar items1 question
Partial exemption for government-related entities2 questions
- 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.True / falseL1Variant
- 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?Single choiceL2Variant
Limits of the exemption1 question
Disclosure retained with the exemption3 questions
- Orme SA, controlled by the government, made total sales of …, of which … 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.CalculationL2Variant
- An entity controlled by the government applies the partial exemption. Which disclosures must it nevertheless provide? More than one answer is possible.Multiple choiceL3
- Cèdre Énergie, controlled by the government, made total purchases of …, 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 …. Calculate the proportion of purchases made with the government and its entities, to be disclosed as the extent of these transactions.CalculationL3Variant