As-18

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CA DREAMER (Querist)
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21 March 2014 Query related to AS-18 If holding co. Trasfrs GOODS to subs.co... it is a related party transaction...but while preparing consolidated fin. Stat no disclosure of the same is reqd in CFS. Similarly if holding co. Transfers any ASSET to subs. Co...it is a related party transaction....my question is whether in cons. Fin.stat. does it need to be disclosed or in this case also same treatment is to be followed as in case of sale of goods by hold.to subsidry......pls reply

CA Jitender Sharma

CA Jitender Sharma (Expert)
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22 March 2014 as per as 18 :-1. No disclosure is required in consolidated financial statements in
respect of intra-group transactions.
2. Disclosure of transactions between members of a group is unnecessary
in consolidated financial statements because consolidated financial
statements present information about the holding and its subsidiaries as a
single reporting enterprise.