The definition of related parties relies on three key terms.These are:
A) directors, control and significant influence.
B) input, effect and common control.
C) authorised trustee corporations, material influence and control.
D) common control, directors and material influence.

Question

Quizplus · Accepted Answer

The definition of related parties in accounting and financial reporting often includes directors (those in positions of authority in an organization), control (the power to govern the financial and operating policies of an entity), and significant influence (the power to participate in the financial and operating policy decisions of an entity, but not control those policies). These terms are essential in identifying relationships that might affect the financial statements.

The Definition of Related Parties Relies on Three Key Terms