PURPOSE I propose to start series of articles on How-to in IFRS? Some of it comes from my working experience at foreign banks and the Big 4 and some from my teaching notes at the IFRS certification courses. Hope you will enjoy the read..!! Happy reading :) How-to Know your Related Parties? OVERVIEW Related party transactions (RPT) are a very common in business nowadays. They are often assumed to be not a good thing. Though this may be true is some corporate scams where the board of directors and promoters take shareholders for a ride, in most cases there are valid commercial reasons for dealing with related parties. The Companies Act, 2013 in India comprehensively provides guidance on the related parties which is not a part of this article. I expressly only write about how to know your related party according to IAS 24. WHO IS ENTITY’S RELATED PARTY? A party is related to an entity, if the party: 1. is controlled by the entity, or control...
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