AS 18

sriram (CA) (281 Points)

19 January 2010

Director resigns during the year. The pvt ltd co has received a loan from him. And it stays outstanding as at year end. Does it attract AS 18?

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7 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 19 January 2010

It attracts As-18 relationship at anypoint of time during the year.Disclosure necessary

sriram (CA) (281 Points)
Replied 19 January 2010

Thanks for your reply

any case law or section tat you can quote reg dis

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 19 January 2010

no case law or section refer AS-18 which is a disclosure AS

sriram (CA) (281 Points)
Replied 19 January 2010

So it means a disclosure to be made in Notes with the amount of loan rite?

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 19 January 2010

u are rite

CA munjal (articled clerk) (100 Points)
Replied 20 January 2010

Related party transaction is to be disclosed only when following conditions are satisfied at the time of transaction

(1) Related party relationship

(2) Related party transaction

So if the loan was given before resignation then it needs to be disclosed.

KUSHAL AGRAWAL (CA Final Student) (128 Points)
Replied 26 May 2010

disclosure necessary only if relationship exist on date of receipt of loan , year is irrelevant

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