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In your own words, discuss the rationale behind AASB 124

Part 1: GENERAL (5 marks)

a) In your own words, discuss the rationale behind AASB 124?


b) According to AASB 124, who are related parties?


c) According to AASB 124, what are related party transactions? (five examples is sufficient)


Part 2: APPLICATION (using real companies) (10 marks) Each group will be allocated 5 companies (one for each member) to research on. Your assignment should cover the following:

a) For each company, identify the related parties and the related party transactions (a template is provided for you to summarize your findings).


b) Critically evaluate each related party transaction and identify those you believe are not at arm’s length. Justify the case(s) that you identified and discuss the incentives behind such transaction(s).


c) Are the disclosures by the company consistent with the requirements of AASB 124?

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