Related party transactions disclosure

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2012 Dear Experts,
Where to disclose related party transaction in revised schedule IV. And how to disclose. In which cases it no need to disclose.

aadish

aadish (Expert)
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14 December 2012 Related party transaction should be disclosed in notes to accounts and it is not Schedule IV , it is as per revised schedule VI and for related party transaction we have to see 7 conditions ,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 description of the relationship between the parties;
(iii) a description of the nature of transactions;
280 AS 18
(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
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. It is as per AS-18(Related Party Disclosure)

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