ACCOUNTING FOR CORPORATE STRUCTURES
Submit the requirements/ answers for the assigned topic with satisfactory completion of all requirements. There is no word requirement in this assignment. However, all requirements must be addressed.
‘AASB 124 requires “disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of a parent or investors with joint control of, or significant influence over, an investee presented in accordance with AASB 10 Consolidated Financial Statements or AASB 127 Separate Financial Statements.’
Is it possible for companies to achieve their desired objectives through the use related party transactions? Based on Nike Australia Pty Ltd (2016 annual report), as an example, to answer the following requirements.
1. For Nike Australia Pty Ltd, identify the related parties and the related party transactions (a template is provided for you to also summarize your findings).
2. Critically evaluate each related party transaction and identify those you believe are not at market value. Discuss why you believe this to be the case and the incentives behind such transaction.
3. Are the disclosures consistent with the requirement of AASB 124?
Assigned Company name Related party category + Type of related party transaction* Related party
(full dollar amount)
+ Use AASB 124 paragraph 21 as a guide * Use AASB 124 paragraph 19 as a guide
• Add more rows as needed for your assignment.
• You are not required to list the remuneration of Key Management Personnel.
• If you have done your search and cannot find the required information, report “undisclosed”.
--- End of Supplementary Assessment --