Related Party Disclosure

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According to M.P. Vijakumar the scope of AS 18 and section 300 are quite different. There are some relations which are covered by section 300 and not covered by AS 18 and also there are certain relations which are covered by AS 18 and not covered by section 300. 

An example of situation 1 is

A private company in which sister's husband is a director. This is covered under section 300 since the relative definition in schedule 1A is quite broad. However about transaction is not required to be disclose under AS 18.

Can anyone give me the example of transaction covered by situation 2.

Replies (1)

Dear Munjal,

If u r talking in terms of defination of "relative" in companies act & AS-18, then all relatives mentioned under AS-18 are covered by the defination of the term under companies act..

But yes, the scope can be different as follows -

The term used in Sec  300 is Director

Whereas the term used in AS-18 is "Key Management Personnel" (Not necessarily a Director like it is not necessary that CEO/CFO should be from the members of the Board)

Key management personnel - those persons who have the authority and

responsibility for planning, directing and controlling the activities of

the reporting enterprise.

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