ACCOUNTANCY & FINANCIAL MANAGEMENT

DIVISION : C
GROUP : 6
TOPIC : IND 24 - RELATED PARTY DISCLOSURES
GROUP MEMBERS :
• HSBC0269 KRISH BHANDHARI
HSBC0270 TISHA BHANDHARI
HSBC0271 TANISHA BHANSALI
HSBC0272 VIDUSHI BHARTIA
HSBC0273 SIDDHART BHATIA
HSBC0274 MANSI BHOJWANI
HSBC0275 TANAY BHUTDA
HSBC0276 DARSHAN BHUTRA
DEFINITION
Close Member
Compensation Entity

Government
Related Party Reporting Entity
Entity

Government
Key Management
Personnel
Related Party
Transactions
OBJECTIVE & SCOPE
• OBJECTIVE
The objective of this standard is to bring to notice the fact that an entity’s financial statements and
profit or loss can be affected by transactions with the related party transactions and disclose
outstanding balances including commitments to such parties.

• SCOPE
This standard shall be applied to:
1. Identifying related parties and transactions with them.
2. Identifying outstanding balance and commitments between the reporting entity and related
parties.
3. Recognising the circumstances in which disclosures will be required in the above-stated
situations
4. Determine the disclosures to be made.
 NOT CONSIDERED AS RELATED PARTIES
• Two entities having common director
• Two joint ventures having joint control
• Trade unions
• Public utilities
• Provide of finance
• Customer, Supplier ,distributor and all those who Transact a significant
volume of business.
• Department or agency of government that does not significantly influence
the reporting entity.
DISCLOSURE
Why should related party transactions be disclosed?

• Negotiated terms
• Investor knowledge
• For reader of the financial statements
• A related party relationship could have an effect on the profit or loss and financial
position of an entity
• Profit or loss and financial position of an entity may be affected by a related party
relationship even if related party transactions do not occur
DISCLOSURES TO BE MADE
• Relationships between parent and subsidiaries should be disclosed
• An entity must report the compensation to the key management personnel
• If the entity has transactions with the related party during the financial year
• Nature of related party relationship,
• Amount of transactions,
• Amount of outstanding balances (including commitments)
• Provisions for doubtful debts related to outstanding balances,
• Expense recognised in respect of bad or doubtful debts due from related parties, and
• Amounts incurred for provision of key management personnel services that are provided by a separate
entity.
SEPARATE DISCLOSURE
The disclosure required must be made separately for the following category
• Parent Company
• Joint control or significant influence
• Subsidiaries
• Associates
• Joint venture where entity is joint venture
• Key management person of entity or its parent
TRANSACTION WITH THE GOVERNMENT-
RELATED ENTITY

Reporting entity is exempt from the disclosures requirement with the government who has
control or joint control or significant influence over the reporting entity and another entity that
is a related party because the same government has control or joint control of or significant
influence over both the reporting and other entity.
An entity must disclose the following:
• Name and nature of its relationship.
• The nature and amount of each individually significant transaction and for other transactions
that are collected,
EXAMPLE OF TRANSACTIONS

•Purchase or sale of goods

•Purchase or sale of assets , property
•Rendering of service
•Lease
•Finance agreements
•Provisions of guarantee or collateral
• Management contracts
•Settlement of liabilities on behalf
 REFERENCES
• https://www.mca.gov.in/Ministry/pdf/Ind_AS24.pdf
• https://resource.cdn.icai.org/23710IndAS-24.pdf
• https://cleartax.in/s/indian-accounting-24-related-party-disclosure/
• https://taxguru-in.cdn.ampproject.org/v/s/taxguru.in/chartered-accountant/
THANK
YOU!