Which of the following statements is correct?
A) A related-party transaction is a transfer of resources, services or obligations between related parties that is not at arm's length.
B) The existence of a related-party transaction can expose an entity to risks or opportunities that otherwise would not have existed in the absence of the relationship.
C) Related parties include organisations that are under the control or significant influence of the entity and individuals such as key management personnel and their close family members.
D) The existence of a related-party transaction can expose an entity to risks or opportunities that otherwise would not have existed in the absence of the relationship, and related parties include organisations that are under the control or significant influence of the entity and individuals such as key management personnel and their close family members.

Question

Quizplus · Accepted Answer

Both statements A and B are correct, and statement C correctly identifies the parties that are considered related parties. Statement D combines all three correct statements into one comprehensive statement.

Which of the Following Statements Is Correct