Assignment # 5 I believe limited trades in fruit and exports same to neighbouringWest African...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Assignment # 5
I believe limited trades in fruit and exports same to neighbouringWest African countries. One of its directors, Talkloud, who happens to be its major founder owns 45% of the companys equity shares. The following transactions took place in the course of the 2022 financial year.
i) Zenith bank ltd is the transaction banker of the company since its inception and has advanced a loan to the company at the prevailing interest rate. ii) A customer of the bank has negotiated with the company for a discount on all purchases. iii) The wife of Talkloud by name Maamesoftspoken has purchased some fruits from the company for exports which accounts for 30% of the total revenue of the company for the 2022 financial year. iv) Talklouds father has advanced a short term loan to the company attracting interest. v) Talkloud has just approved a loan to one of the key management personnel of the company. vi) Sold goods to a shareholder owning 40% of the company's ordinary shares. Required:
Explain, giving reasons, how each of the abovetransactions should be classified and disclosed in accordance with IAS 24, Related Party Disclosures in I Believe Ltds annual report.
Assignment # 5
I believe limited trades in fruit and exports same to neighbouringWest African countries. One of its directors, Talkloud, who happens to be its major founder owns 45% of the companys equity shares. The following transactions took place in the course of the 2022 financial year.
i) Zenith bank ltd is the transaction banker of the company since its inception and has advanced a loan to the company at the prevailing interest rate.
ii) A customer of the bank has negotiated with the company for a discount on all purchases.
iii) The wife of Talkloud by name Maamesoftspoken has purchased some fruits from the company for exports which accounts for 30% of the total revenue of the company for the 2022 financial year.
iv) Talklouds father has advanced a short term loan to the company attracting interest.
v) Talkloud has just approved a loan to one of the key management personnel of the company.
vi) Sold goods to a shareholder owning 40% of the company's ordinary shares.
Required:
Explain, giving reasons, how each of the abovetransactions should be classified and disclosed in accordance with IAS 24, Related Party Disclosures in I Believe Ltds annual report.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.