Words of Wisdom:

"heaven is similar to this site"by neeraj shastry" - Baseball

Related Party

  • Date Submitted: 03/27/2012 03:29 AM
  • Flesch-Kincaid Score: 32.6 
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  *   This AS should be applied in reporting related party relationships and transactions between a reporting enterprise & its related parties.
  *   The related party relationships covered by this AS are:
(a) Enterprises that are controlled by, or control, or are under common control with, the reporting enterprise, either directly or indirectly.
(b) Associated & joint ventures of reporting enterprise, and vice-versa.
(c) Individuals controlling significant voting power of the reporting enterprise, and relatives of any such individual.
(d) Key management personnel & relatives of such personnel.
(e) Enterprises over which persons referred in (c) and (d) exercise significant influence.
  * The following are deemed not to be related parties:

(a) Two companies having a common director unless such director is able to affect the policies of both the companies in their mutual dealings.
(b) A single customer, supplier, franchisee, distributor or general agent with whom reporting enterprise transacts a significant volume of business, merely by virtue of the resulting economic dependence.
(c) Financiers, trade unions, public utilities, govt. depts. and govt. sponsored bodies, merely by virtue of normal dealings with reporting enterprise.
  * If a statute or a regulator or a similar competent authority specifically prohibits disclosure of certain information as per this AS, such disclosure need not be made.
  * No disclosure is required in consolidated financial statements in respect of intra-group transactions.
  * No disclosure is required in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises.

  * Name of the related party alongwith the nature of relationship with such party, where control exists, should be disclosed irrespective of...


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