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pankaj shukla

pankaj shukla (Querist)
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12 November 2011 plz define as 18 related party transaction
what is exactly mening of related party transaction

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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12 November 2011 A business deal or arrangement between two parties who are joined by a special relationship prior to the deal.

If there have been transactions between related parties, during
the existence of a related party relationship, the reporting enterprise
should disclose the following:
(i) the name of the transacting related party;
(ii) a descripttion of the relationship between the parties;
(iii) a descripttion of the nature of transactions;
(iv) volume of the transactions either as an amount or as an
appropriate proportion;
(v) any other elements of the related party transactions necessary
for an understanding of the financial statements;
(vi) the amounts or appropriate proportions of outstanding items
Related Party Disclosures
pertaining to related parties at the balance sheet date and
provisions for doubtful debts due from such parties at that
date; and
(vii) amounts written off or written back in the period in respect of
debts due from or to related parties.