AS-18 Related Party Disclosures

Accountancy

Find are they related in following cases:- 1)If a person A is a KMP of B Ltd. as well as of C Ltd. then are B Ltd. and C Ltd. related. 2)If A Ltd. holds 60% in B Ltd. and B Ltd. holds 55% in C Ltd. and A Ltd. holds 60% in D Ltd. then are C Ltd. and D Ltd. related.

Harsh Mittal

CA Final

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28-Sep-22 20:30

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Answers (4)

1. As 'A' is a KMP of both the companies ( B Ltd and C Ltd), they are related. 2. As C Ltd and D Ltd has a common holding company A Ltd, they are related. (Subsidiary of a subsidiary company is also a subsidiary of that company. As how A Ltd and C Ltd are here.)

Balaji K

Qualified CA

★ 7K+

29-Sep-22 00:22

If A is a KMP of B Ltd. and B Ltd. holds 56% in C Ltd. then are A and C Ltd. related

Thread Starter

Harsh Mittal

CA Final

★ 1K+

29-Sep-22 21:53

Thread Starter

Harsh Mittal

If A is a KMP of B Ltd. and B Ltd. holds 56% in C Ltd. then are A and C Ltd. related

Since C is a subsidiary, A will be in a position to influence C through B. Hence related party.

CA Suraj Lakhotia

Admin

30-Sep-22 15:55

CA Suraj Lakhotia Admin

Since C is a subsidiary, A will be in a position to influence C through B. Hence related party.

Ok sir, Thank you

Thread Starter

Harsh Mittal

CA Final

★ 1K+

01-Oct-22 09:56