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

Ananya Retail Ltd, an associate of Zenith Group, enters into many small similar transactions with related parties. The CFO wants to know why Ind AS 24 contains paragraph 24A, which is absent from IAS 24. What is its purpose according to the comparison with IAS 24?

Paragraph 24A of Ind AS 24 provides additional clarificatory guidance on aggregating transactions for disclosure. It was added in the Indian standard and is not in IAS 24. It does not set a monetary threshold, require netting or prescribe a measurement method for related party transactions.

  1. AIt gives additional clarificatory guidance on aggregation of transactions for disclosureCorrect
  2. BIt sets a monetary threshold below which no related party disclosure is needed
  3. CIt requires netting of related party receivables against payables
  4. DIt prescribes the fair value method for related party loans

Explanation

Appendix 1 states that paragraph 24A was included in Ind AS 24 to give additional clarificatory guidance regarding aggregation of transactions for disclosure. It does not set a threshold, netting rule or measurement basis, so the other options are unsupported.

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