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CA Final · Financial Reporting · Ind AS 24 Related Party Disclosures

A student compares Ind AS 24 with IAS 24 to identify differences in terminology. Which of the following is a terminology difference noted in Ind AS 24 as compared to IAS 24?

Ind AS 24 uses the term 'balance sheet' instead of 'statement of financial position'. This is a terminology difference from IAS 24 noted in the comparison. Terms such as related party, control and commitments are not replaced or removed.

  1. AThe term 'balance sheet' is used instead of 'statement of financial position'Correct
  2. BThe term 'related party' is replaced by 'associated party'
  3. CThe term 'control' is replaced by 'dominance'
  4. DThe term 'commitments' is deleted from the standard

Explanation

The comparison with IAS 24 notes that different terminology is used in Ind AS, for example 'balance sheet' instead of 'statement of financial position'. The other terms are not replaced, and commitments remain relevant, as paragraph 8 refers to outstanding balances including commitments.

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