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CA Intermediate · Advanced Accounting · AS 18 Related Party Disclosures

Which of the following is NOT deemed a related party relationship merely by virtue of the stated relationship under AS 18?

Two venturers sharing joint control of a joint venture are not necessarily related parties merely because of that. AS 18 specifically excludes this, whereas holding-subsidiary, investor-associate and enterprise-key management personnel relationships are expressly treated as related party relationships.

  1. AA holding company and its subsidiary
  2. BTwo venturers in the same joint venture, in their dealings with each other solely as venturersCorrect
  3. CKey management personnel and the enterprise
  4. DAn investing party and its associate

Explanation

AS 18 states that two parties are not necessarily related merely because they have a director or key management in common, or because they are venturers sharing joint control. Holding-subsidiary, KMP-enterprise and investor-associate relationships are specified related party categories.

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