Disclosure under AS 18

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2010 hi...
Can anyone reply me fast on the following query?

A
bank holds 30% stake in a company A. and Company A has two wholly owned subsidiaries company B and company C.
My Query is (1) whether transaction between Bank and Company B (100% subsidiary of A in which bank holds 30% stake) be reported by company B under AS 18.
(2)whether company A should report the transactions taken place between company B and bank while preparing its consolidated accounts under AS 18.

Please reply fast as I am finalising the accounts and preparing the reports for the same

shakuntala chhangani

shakuntala chhangani (Expert)
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12 April 2010 Hi, disclosure is specifically exempted "where the disclosure of RPR and the transaction with such enterprise would come in conflict with dities of confidentiality of the reporting enterprise e.g.Banks."
Hence in ur case, no related party transaction disclosure is required.
In case u hv any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 thanks for the reply, can you explain me " where transaction with such enterprise would come in conflict with dities of confidentiality of the reporting enterprise e.g. banks" since in my case, my holding co is having two wholly owned subsidiaries, and one of my subsidiary is having transaction with the bank which holds 30% stake in my holding co..

and so i would like to know whether transaction taken place bwtn my wholly owned subsidiary company and bank (which hold 30% stake in my company) be reported by my wholly owned subsidiary company in notes to accounts as disclosure under AS 18 while preparing annual accounts...

in case you have any doubts in understanding the question, please let me know...

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shakuntala chhangani

shakuntala chhangani (Expert)
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26 April 2010 will reply u soon.