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As 18 related party disclosures
Accountancy
If H ltd holds 30% in A ltd and 40% in p ltd. P ltd holds 25% in A ltd. Will H ltd and p ltd will be called as related party?
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Best Answer
Related party means â??at any time during the year, one party has an ability to: (i) Control* the other party (ii) Exercise significant influence over the other party in making financial and/or operating decisions And Control means "Ownership, direct or indirect, of more than 50% of the voting power of an enterprise, or control of the composition of the board of directors " Based on the information given, H ltd holds 40% only, so P is an associate of H Ltd but just this is not enough to be called a Related party
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