A person who was consultant receiving professi0nal fees during the first half of the year became the CEO in the second half. He is identified as key management person. Kindly clarify whether the amount paid to him as consultant to be disclosed under AS 18.
5 Replies
CA Ramsai N
(Fresher)
(594 Points)
Replied 17 June 2013
AS-18 Disclosure says:: " attention is focussed on transactions with the directors or similar
key management personnel of an enterprise """
Hence Disclosure is required in this regard
pragadeeshkanna
(searching)
(281 Points)
Replied 17 June 2013
But as on the transaction date the said KMP is not a KMP at all.
CA Ramsai N
(Fresher)
(594 Points)
Replied 17 June 2013
| Originally posted by : pragadeeshkanna | ||
 |
But as on the transaction date the said KMP is not a KMP at all. |
 |
No disclosure is required in that case..
As per AS-18 """If there have been transactions between related parties, during the
existence of a relatedi party relationship the reporting enterprise should disclose....."""
pragadeeshkanna
(searching)
(281 Points)
Replied 17 June 2013
So during first half he was not a related party so the consultant fee need not be disclosed in the note if I am correct.
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