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

Vindhya Foods Ltd reports numerous small transactions with a related party, Satpura Traders, such as repeated purchases of packing material. The CFO asks why the Indian standard includes extra guidance in paragraph 24A, absent in IAS 24. Which description of paragraph 24A is correct per the comparison with IAS 24?

Paragraph 24A of Ind AS 24 gives additional clarificatory guidance on aggregating transactions for disclosure. It was added in the Indian standard and is not in IAS 24. It does not fix a monetary limit or forbid aggregation, so the CFO can rely on it for repeated small transactions.

  1. AIt removes the need to disclose any transaction with a single related party
  2. BIt provides additional clarificatory guidance regarding aggregation of transactions for disclosureCorrect
  3. CIt prescribes a monetary threshold below which transactions are excluded
  4. DIt requires every transaction to be disclosed separately without aggregation

Explanation

The comparison with IAS 24 states that paragraph 24A has been included in Ind AS 24 to provide additional clarificatory guidance on aggregation of transactions for disclosure. It neither sets a monetary threshold nor bans aggregation, so the other options misstate it.

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