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Which of the following must be disclosed in annual report? Accounting treatment method Related party transaction Remuneration of directors All of the above

Question

Which of the following must be disclosed in annual report?

  • Accounting treatment method
  • Related party transaction
  • Remuneration of directors
  • All of the above
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Solution

The correct answer is All of the above.

Explanation

In an annual report, companies are required to disclose various key pieces of information to provide transparency and ensure that stakeholders are well informed. This typically includes:

  1. Accounting treatment method: The methods used for accounting policies, such as revenue recognition, must be disclosed to provide clarity on how the financial statements are prepared.

  2. Related party transaction: Any transactions with related parties must be disclosed to prevent conflicts of interest and ensure that such transactions are conducted at arm's length.

  3. Remuneration of directors: Information regarding the compensation and benefits provided to directors is also required to hold management accountable.

Therefore, all these elements must be included in an annual report, making "All of the above" the correct choice.

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