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Define related party transaction under AS 18.

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROSHNI asked about 2 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 NANCY JAIN answered about 2 years ago

Purchases or sales of goods (finished or unfinished); • Purchases or sales of fixed assets; • Rendering or receiving of services; • Agency arrangements; • Leasing or hire purchase arrangements; • Transfer of research and development; • Licence agreements; • Finance (including loans and equity contributions in cash or in kind); • Guarantees and collateral etc. • Management contracts including for deputation of employees

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 2 years ago

**RELATED PARTY TRANSACTIONS** AS 18 defines “related party transaction” as under: “Related party transaction - a transfer of resources or obligations between related parties, regardless of whether or not a price is charged.” “24. The following are examples of the related party transactions in respect of which disclosures may be made by a reporting enterprise:  purchases or sales of goods (finished or unfinished);  purchases or sales of fixed assets;  rendering or receiving of services;  agency arrangements;  leasing or hire purchase arrangements;  transfer of research and development;  licence agreements;  finance (including loans and equity contributions in cash or in kind);  guarantees and collaterals; and  management contracts including for deputation of employees.” As per the definition of the related party transaction, the transaction should be between related parties to qualify as a related party transaction. Since key management personnel are related parties under AS 18, remuneration paid to keymanagementpersonnel is a related partytransaction requiring disclosures under AS 18. Further, in case non-executive directors on the Board of Directors are not related parties (see Accounting Standards Interpretation 21), remuneration paid to them is not considered a related party transaction. Thanks

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Picsjoin 2017224123730582 Archana answered about 2 years ago

Hie Roshni, Para 10 of AS 18 defines Related Party Transactions- a transfer of resources or obligations between related parties, regardless of whether or not price is charged. **Examples of Related Party Transactions:** 1. Purchase or Sale of Goods 2. Purchase or Sale of Fixed Assets 3. Rendering or receiving of services 4. Leasing or Hire Purchase Agreements 5. Transfer of Research and Development 6. Financing Transaction 7. Management services provided by one company to another. 8. Group Branding or advertising without any cost. 9. Use of common infrastructures such as premises, vehicles, etc. without any cost.

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Data?1494421738 samkit kothari answered about 2 years ago

As per Accounting Standard 18-‘Related Party Disclosures’ issued by the ICAI, Related party means “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” and Related Party transaction means “a transfer of resources or obligations between related parties, regardless of whether or not a price is charged. Fllowing are the examples of the related party transactions in respect of which disclosures may be made by a reporting enterprise: • Purchases or sales of goods (finished or unfinished); • Purchases or sales of fixed assets; • Rendering or receiving of services; • Agency arrangements; • Leasing or hire purchase arrangements; • Transfer of research and development; • Licence agreements; • Finance (including loans and equity contributions in cash or in kind); • Guarantees and collateral etc. • Management contracts including for deputation of employees

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered about 2 years ago

Hiiii friend..... **Related Party Transaction** As per Accounting Standard 18-‘Related Party Disclosures’ issued by the ICAI, Related party means “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” and Related Party transaction means “a transfer of resources or obligations between related parties, regardless of whether or not a price is charged. **The following are the related parties as per AS-18** • Holding companies, subsidiaries and fellow subsidiaries • Associates and joint ventures • Individuals (incl. their relatives) – having voting power giving them control or significant influence • Key management personnel including their relatives • Enterprises where controlling individual or key managerial personnel has significant influence **However, disclosure is mandatory for the following categories of companies.** • Companies which are listed or are in process of listing • Banks, financial institutions and insurance companies • Enterprises having turnover > Rs. 50 cr. • Enterprises having borrowings > Rs. 10 cr. • Holding / subsidiary company of any of the above If any company does not fall in any of these categories, after having been applicable earlier, then it shall continue to apply unless it is not covered in any category for 2 consecutive years. Regards, Jitendra Suthar

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Data?1494421730 rohit awasthi answered about 2 years ago

hii roshni **Related Party** According to AS 18, “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.” A related party transaction involves a transfer of resources or obligations between related parties, regardless of whether or not a price is charged. Following are the examples of the related party transactions in respect of which disclosures may be made by a reporting enterprise: • Purchases or sales of goods (finished or unfinished); • Purchases or sales of fixed assets; • Rendering or receiving of services; • Agency arrangements; • Leasing or hire purchase arrangements; • Transfer of research and development; • Licence agreements; • Finance (including loans and equity contributions in cash or in kind); • Guarantees and collateral etc. • Management contracts including for deputation of employees

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