Can we consider Government as a Related Party under AS 18 for disclosures of a Government Company ?
Jishnu Surendran (Finance Manager) (312 Points)
23 March 2013Can we consider Government as a Related Party under AS 18 for disclosures of a Government Company ?
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 25 March 2013
As per AS - 18, State-controlled enterprise - an enterprise which is under the control of the Central Government and/or any State Government(s). (Para 10.13)
No disclosure is requiredin the financialstatements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises. (Para 9)
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 26 March 2013
Thank you, that part has been clarified
but the question was, do we have to disclose the government as a related party, not other state controlled enterprises.........
I mean under the revised Schedule VI....there should be a separate disclosure regarding 'Loans from Related Parties'. A company has huge Government borrowings. Do we have to disclose these under 'Loan from Related Parties' ?
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 26 March 2013
Nope. The same was addressed in the above response. With respect to Revised Schedule VI disclosures, AS 18 is to be looked into is what the guideline says. AS 18 says no disclosure reqd for Govt companies.
Hope the query is answered.
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