AS-18
This query is : Open
CA. Jyoti Baid
(Querist)
26 July 2009
Hello Sir/Madam,
ARE THE FOLLOWING RELATED PARTY TRANSACTIONS as per AS-18:
Preliminary expenses incurred by the promoters of the new company, who after incorporation become directors and shareholders of the company.
Brokerage earned by a stock broking company due to trading of shares on NSE/BSE by its related parties on their own account.
Thanks & Regards,
Jyoti Baid
ARE THE FOLLOWING RELATED PARTY TRANSACTIONS as per AS-18:
Preliminary expenses incurred by the promoters of the new company, who after incorporation become directors and shareholders of the company.
Brokerage earned by a stock broking company due to trading of shares on NSE/BSE by its related parties on their own account.
Thanks & Regards,
Jyoti Baid
Abhishek Mohta
(Expert)
27 July 2009
The first one will not be related party transaction whereas the second one is a related party transaction to be disclosed in Notes to Account.
CA. Jyoti Baid
(Querist)
27 July 2009
Thankyou for the reply.
I also agree with your opinion in the first case.
But what should be the reason or expanation to this as preliminary expense is incurred by the director who is the Key Management Personel of the company. KMP is a related party.
Please answer.
I also agree with your opinion in the first case.
But what should be the reason or expanation to this as preliminary expense is incurred by the director who is the Key Management Personel of the company. KMP is a related party.
Please answer.
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