Director remuneration treatment in audit report
This query is : Resolved
VISHAL PATEL
(Querist)
09 July 2013
hi,
director remuneration is consider as payment u/s 40A(2)(b).
director remuneration is consider as payment u/s 40A(2)(b).
09 July 2013
Yes Considered.
Since key management personnel are related parties under AS 18, remuneration paid to key management personnel is a related party transaction requiring disclosures under AS 18.
Further, in case non executive directors on the Board of Directors are not related parties, remuneration paid to them is not considered a related party transaction.
Since key management personnel are related parties under AS 18, remuneration paid to key management personnel is a related party transaction requiring disclosures under AS 18.
Further, in case non executive directors on the Board of Directors are not related parties, remuneration paid to them is not considered a related party transaction.
09 July 2013
In this regard, Accounting Standards Interpretation (ASI) 23 on 'Remuneration paid to key management personnel whether a related party transaction (Re. AS 18)' issued by ICAI may be seen from link given below--
https://220.227.161.86/335asi_accstand23.pdf
https://220.227.161.86/335asi_accstand23.pdf
Ajay Mishra
(Expert)
09 July 2013
Generally Director remuneration details is not required to give in Audit Report. It is given in Balance Sheet and Notes to accounts.
For Notes to Account, agree with expert.
For Notes to Account, agree with expert.
09 July 2013
Dear Ajay Ji here person asking the question mean to say Tax Audit report. In Tax Audit report this disclosure is required to be made.
Ajay Mishra
(Expert)
09 July 2013
Ok Dear Sanjay, Its my fault. Thanks for correcting me.
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