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Ind-AS: 24 Related Party Disclosures (Definitions (Close members to family…
Ind-AS: 24 Related Party Disclosures
Definitions
Holding co.
controlling
Subsidiary co.
controlled
Fellow subsidiary co.
under common control
Control
more than 50% voting power,
control over decision making power
Significant influence
20-50% of voting power,
participation in decision-making
Associate co.
significant influence
Joint venture
economic activity undertaken by entities,
subject to joint control
Key mgt
exercising planning, directing & controlling powers
Close members to family of a person
Spouse
Kids
Siblings
Parents
Domestic partner
Kids of domestic partner
Dependents
Spouse's dependents
Domestic partner's dependents
Related party transaction
transaction of transfer of resources
whether
price is charged or not
includes remuneration (all benefits as per Ind-AS 19) to KMP
Related party- Person
person includes his family
Person controls entity
Person has significant influence over entity
Entity is a joint venture of person
no relation between co-venturers
Person is a KMP in parent co.of entity
Common person has
control
in 2 entities
both entities are RPs to each other
Common person has
control
in 1 entity & SI in other
both entities are RPs to each other
Common person has
control
in 1 entity & KMP in other
both entities are RPs to each other
Person is a KMP of entity
Related party- Entity
All companies in the same
group
group of holding & subsidiary whether direct/indirect
Associate/JV of entity is its RP
no relation between co-venturers
Member in a
group
has asscoiate/JV -
All entities in the
group
shall be RPs of associate/JV
no relation between co-associates
2 JVs having common entity
Associate & JV having common entity
Special Relationships
Entity provides KMP services to another entity
Entity provides KMP to another entity in a
group
-
All
group
entities shall be RPS of service provider
Entity establishes another entity for post employment benefits of its employees
Not Related Party
Trade Unions
Single customer, supplier, franchisee or distributor
Govt. co.
Co-venturers
Co-associates
Entities having common KMP
Report
Based on control
Prepare report always
Not based on control
Prepare report when there is an RP transaction
Contents
Name of RP
Nature of relationship
Nature of transaction
Volume of transaction
Bad debts written off
Provision for doubtful debts
O/s balances with RP
Guarantees given on behalf of RPs
Payment of remuneration to KMP