As per Para 3a of AS 18, is subsidiary of a fellow subsidiary, a related party for the reporting entity?
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As 18
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As per paragraph 3A of AS18, only Holding company, subsidiary, fellow subsidiary company is considered as related party for the reporting entity.
Therfore, subsidiary of fellow subsidiary is not considered as related party for the purpose of AS18.
As per AS 18, CONTROL determines whether an enterprise is related to another or not. Being a subsidiary is not necessary for that.
Example: An entity over which another entity has 20% voting power and directs the operational or financial decisions.
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