Related party transaction under ind as 24

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Ankit kumar Gupta (Querist)
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17 April 2018 Issue : Whether an entity in which relative of KMP is having significant influence is a related party for the reporting entity as per Ind AS 24.

Fact : A company (XYZ) is entered into transaction of purchases & Sales of goods with PQR, in which brother of KMP of XYZ is having significant influence (holding the position of Chairman & Managing Director and also promoter of PQR) Is XYZ and PQR a related party under Ind AS 24.

Aditya V

Aditya V (Expert)
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17 April 2018 Related party definition as per ind as 24 includes those enterpises in which KMP of the reporting Enterprise and/or his relatives hold control or significant influence.
The word Relative include 'Brother'
Therefore, the transaction made by XYZ being reporting Enterprise with PQR is a related party transaction as per Ind as 24.