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.
