Skip to content

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

Sunrise Textiles Ltd, an Indian company, has a statute that bars it from disclosing certain details of dealings with a related party. The finance head asks whether Ind AS 24 still requires those details to be disclosed. Under the Ind AS 24 text as notified in India, what is the position?

Ind AS 24 as notified in India does not require disclosures that conflict with confidentiality requirements of a statute or regulation. The reason is that an accounting standard cannot override legal or regulatory requirements, so Sunrise Textiles need not disclose those details.

  1. ADisclosures that conflict with confidentiality requirements of statute or regulations are not required, because an accounting standard cannot override legal or regulatory requirementsCorrect
  2. BAll related party disclosures must be made in full, since Ind AS overrides any statute on confidentiality
  3. CDisclosure is required but only in the auditor's report and not in the financial statements
  4. DDisclosure is waived only if the related party gives written consent to the company

Explanation

The Indian carve-out in Ind AS 24 (paragraphs 4A and 4B) says that disclosures conflicting with confidentiality requirements of statute or regulations are not required, as accounting standards cannot override legal or regulatory requirements. The first option is therefore correct. The second option reverses this position.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 24 Related Party Disclosures shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 24 Related Party DisclosuresFree diagnostic mock

More Ind AS 24 Related Party Disclosures questions