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

Kaveri Auto Ltd made many small related party transactions during the year. The accounting team is deciding how to present them and wants to know which feature the Indian Ind AS 24 adds beyond IAS 24 to guide this. Which is correct?

Indian Ind AS 24 includes paragraph 24A, which gives additional clarificatory guidance on aggregating transactions for disclosure. Kaveri Auto's accounting team should refer to it when presenting its many small related party transactions, as the other paragraphs concern different matters.

  1. AParagraph 24A, giving additional clarificatory guidance on aggregation of transactions for disclosureCorrect
  2. BParagraph 4A, which requires every transaction to be disclosed separately without any aggregation
  3. CParagraph 14, which prohibits aggregation of transactions of a similar nature
  4. DParagraph 8, which prescribes the monetary limit above which aggregation is allowed

Explanation

Appendix 1 states that paragraph 24A was included in Ind AS 24 to give additional clarificatory guidance on aggregation of transactions for disclosure. The other paragraphs deal with confidentiality, control relationships and purpose, and none prescribes a monetary limit.

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