Key Topics: Financial instruments, revenue recognition, related party transactions, ethical issues, ACCA / IESBA code of ethics

Standards covered: IAS 32 financial instruments: presentation, IFRS 15 revenue from contracts with customers, IAS 24 related party transactions

Description: The requirement sets out two separate scenarios where money has been received from different parties and requires you to consider if revenue can be recognised in relation to these. Further, money received from one particular party considers if the transaction represents a related party transaction. The question explores the breach of fundamental principles in relation to knowingly giving out misleading information. You are expected to consider which principles have been sacrificed and therefore what threats have arisen.