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CA Intermediate · Advanced Accounting · AS 18 Related Party Disclosures

Nila Ltd. discloses that it sold goods to its associate Omega Ltd. Which of the following items is NOT required by AS 18 to be disclosed for this related party transaction?

The tax assessment status of Omega Ltd. is not required. AS 18 requires the related party's name and relationship, the nature and volume of transactions, outstanding balances, provisions for doubtful debts and amounts written off or written back, but says nothing about the other party's tax status.

  1. AThe name of the transacting related party and nature of the relationship
  2. BThe description of the nature of the transactions and their volume
  3. CAmounts or appropriate proportions of outstanding items, and provisions for doubtful debts due from the related party
  4. DThe tax assessment status of Omega Ltd.Correct

Explanation

AS 18 requires disclosure of the name of the related party and relationship, nature and volume of transactions, outstanding balances, provisions for doubtful debts, and amounts written off or written back during the period. The tax assessment status of the related party is not among the required disclosures.

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