Related party disclosure
This query is : Resolved
29 November 2013
A pvt company receiving loan from its directors. is it a related party transaction as per AS-18?
29 November 2013
clause (d) of para 3 of AS 18 is re-produced below:
(d) key management personnel and relatives of such personnel;
and
Directors are Key Management personnel hence any transaction with directors is fall under the sweep of AS 18.
For further reference please visit:
https://220.227.161.86/27284asb-as-18.pdf
(d) key management personnel and relatives of such personnel;
and
Directors are Key Management personnel hence any transaction with directors is fall under the sweep of AS 18.
For further reference please visit:
https://220.227.161.86/27284asb-as-18.pdf
29 November 2013
As per AS-18 related party includes Key Managerial Person
Key management personnel are those persons who have the authority
and responsibility for planning, directing and controlling the activities
of the reporting enterprise. For example, in the case of a company, the
managing director(s), whole time director(s), manager and any person in
accordance with whose directions or instructions the board of directors of
the company
is accustomed to act, are usually considered key management personnel.
Explanation:
A non-executive director of a company is not considered as a key
management person under this Standard by virtue of merely his being a
director unless he has the authority and responsibility for planning, directing
and controlling the activities of the reporting enterprise. The requirements
of this Standard are not applied in respect of a non-executive director even
Key management personnel are those persons who have the authority
and responsibility for planning, directing and controlling the activities
of the reporting enterprise. For example, in the case of a company, the
managing director(s), whole time director(s), manager and any person in
accordance with whose directions or instructions the board of directors of
the company
is accustomed to act, are usually considered key management personnel.
Explanation:
A non-executive director of a company is not considered as a key
management person under this Standard by virtue of merely his being a
director unless he has the authority and responsibility for planning, directing
and controlling the activities of the reporting enterprise. The requirements
of this Standard are not applied in respect of a non-executive director even
29 November 2013
As per AS-18, Related Party Transaction covers:
1. Salary to Director
2. Advance against share capital given
3. Lease Rent on equipment received
4. Securities Deposit Receipt-Refunded
5. Unsecured Loan (taken/given/returned)
6. Loan & Advances
7. Share application money invested
8. Share Application money received
9. Shares Issued.
As per AS-18, Related Party Transaction covers:
1. Salary to Director
2. Advance against share capital given
3. Lease Rent on equipment received
4. Securities Deposit Receipt-Refunded
5. Unsecured Loan (taken/given/returned)
6. Loan & Advances
7. Share application money invested
8. Share Application money received
9. Shares Issued.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
