Krutika Khedkar (Chartered Accountant) (77 Points)
12 November 2014If company A's Director and Company B's Director are related parties, does transaction between company A and company B attracts AS-18??
Ashish
(student)
(366 Points)
Replied 13 November 2014
If Company A's Director is in relation with B (Definition of Relative as per AS 18) who is the director of Company B, then both cos are Related Party as per clause e of para 3 of AS 18
CA Meetali
(Practicing Chartered Accountant)
(145 Points)
Replied 01 December 2014
If the Directors are able to affect the policies of both the companies in their mutual dealing then only both the companies would be related parties.[as per para 3(e) read with para 4(a) of AS-18].
CAclubindia
