AS-18

This query is : Open

CA. Jyoti Baid (Querist)
Follow

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

Abhishek Mohta

Abhishek Mohta (Expert)
Follow

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

CA. Jyoti Baid (Querist)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anurag Sharma

Shraddha Pangam

J.Vijai

sachingurav

Tanishka Khandelwal

Subscribe Now

AS-18

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Senior Executive

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

CA Final