[Illustrative Checklist] Disclosure requirements under AS 18 | Related Party Disclosures
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 15 February, 2023
Latest from Taxmann
The objective of AS 18, Related Party Disclosures, is to prescribe the requirements for disclosure of related party relationships and transactions between the reporting enterprise and its related parties. The requirements of the standard apply to the financial statements of each reporting enterprise as also to consolidated financial statements presented by a holding company. Related 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.
As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:
I. Where entity is having control over other entity, irrespective of whether or not there have been transactions between the related parties, has the entity disclosed the following:
a. Name of the related party
b. Nature of the related party relationship
II. If there have been transactions between related parties, during the existence of a related party relationship, whether the reporting enterprise disclosed the following:
a. The name of the transacting related party
b. A description of the relationship between the parties
c. A description of the nature of transactions
d. Volume of the transactions either as an amount or as an appropriate proportion?
e. Any other elements of the related party transactions necessary for an understanding of the financial statements
f. The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date
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
CA | CS | CMA
