[Identification, Audit & Disclosure Checklist] of RPTs and Relationships under AS 18 & Ind AS 24
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 26 May, 2023
Latest from Taxmann
From the point of view of accounting, a related party refers to an individual or entity that has the ability to influence the actions or decisions of another entity. This influence can arise from a variety of relationships, including ownership interests, common management, or family ties. Related parties can significantly impact an entity’s financial and operational affairs, which is why transactions with related parties and their relationships are closely regulated and required to be reported under various provisions.
I. Related Party as per AS 18
Two parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.
II. Related Party as per Ind AS 24
A related party is a person or entity that is related to the entity that is preparing its financial statements (referred as ‘reporting entity’) if it has control or joint control of the reporting entity, or has significant influence over the reporting entity, or is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
III. Disclosure
In order to comply with the provisions of Ind AS 24 and AS 18, entities are required to make certain disclosures on related party transaction, relationships and balances. It is the responsibility of entities to ensure adequacy and accuracy of related party disclosure along with compliance with the relevant reporting framework. To ensure all necessary disclosures under Ind AS 24 and AS 18 entities may use the given checklist:
a) Has the company disclosed,
(i) Name of the related party and
(ii) Nature of the related party relationship
b) Whether the company has made the statutory disclosures of transactions with certain categories of related parties
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
