The relationships of Tree Ltd are summarised as follows: Tree Plc owns 70% of equity shares of
Question:
The relationships of Tree Ltd are summarised as follows:
Tree Plc owns 70% of equity shares of Leaf Plc and 15% of equity shares in Branch Plc.
Bryan owns 25% of equity shares of Tree Plc and Gill is his wife.
Ruth is a director of Tree Plc. She owns 60% of the equity shares in Root Plc. Paul is her partner and owns 10% of equity shares in Twig Plc.
Hannah works for Tree Plc as a manager, but she is not a director, and Bill is her son.
Tree Plc has a pension scheme for its employees.
Tree Plc buys approximately 35% of its main product from one overseas supplier.
Requirement:
For each of the organisations and individuals above, explain whether they are classed as related parties to Tree Plc according to IAS 24.
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker