Related Party Disclosure
This query is : Resolved
24 September 2010
A transaction enterd by the copany with another co. for purchase of goods of more than 1 crore and one employee is director in that co from which goods has been purchased.this employee is also a director of other company in which he is working as an employee, which is its parent company.this employee is on contractual basis.Eployee contract is with the parent copany.wheather this transaction would be covered with related party transaction.Pls. revert me as soon as possible.
24 September 2010
As Per AS 18 Related party includes
" Key management personnel and relatives of such personnel are those persons who have authority and responsibility for planning directing and controlling the activities of the reporting enterprises."
Since the one person is director of both the company , amd he is in the position to influence the deceision making , I think this is related party.
" Key management personnel and relatives of such personnel are those persons who have authority and responsibility for planning directing and controlling the activities of the reporting enterprises."
Since the one person is director of both the company , amd he is in the position to influence the deceision making , I think this is related party.
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- GST Intimation due to Government took possession of Business Premises under PPE Act
- UDIN ISSUE
- Non filing of I T Returns
- TDS on purchase of under construction property from a reseller
- SALARY CAN BE CAPITALIZE
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
