(PDF) Quick Reference on Ind AS 24, Related Party Disclosures

Download Quick Reference on Indian Accounting Standard (Ind AS) 24, Related Party Disclosures


Ind AS 24: Related Party Disclosures

The objective of this Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties.

This standard shall be applied in:

a) identifying related party relationships and transactions;

b) identifying outstanding balances, including commitments, between an entity and its related parties;

c) identifying the circumstances in which disclosure of the items in (a) and (b) is required; and

d) determining the disclosures to be made about those items.

Further this Standard also requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of a parent or investors with joint control of, or significant influence over, an investee. This Standard also applies to individual financial statements.

Intragroup related party transactions and outstanding balances are eliminated, except for those between an investment entity and its subsidiaries measured at fair value through profit or loss, in the preparation of consolidated financial statements of the group.

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