An entity is related to a reporting entity if any of the following conditions apply, except:
A) the reporting entity has significant economic dependence on the entity;
B) both entities are joint venture of the same third party;
C) the entity is the subsidiary of the reporting entity;
D) the entity is a post-employment benefit plan for the reporting entity's employees.

Question

Quizplus · Accepted Answer

Significant economic dependence does not automatically establish a related party relationship under accounting standards. The other options describe scenarios that typically define related party relationships.

An Entity Is Related to a Reporting Entity If Any