What are related party transactions under companies Act?
Meaning of Related Party Transactions
| Sl no | Transactions as per Companies Act requiring approval of the Board by resolution |
|---|---|
| 1. | Goods and Material: Sale, purchase or supply |
| 2. | Property: Selling or buying or leasing |
| 3. | Agent for (1) and (2) above |
What is a related party FRS 102?
IFRS. UK GAAP (FRS 102) Definition. A related party is a person or entity that is related to the entity that is preparing its financial statements (the reporting entity).
What is Section 188 of the Companies Act, 2013?
Generally, any person or any entity which is related to the reporting entity is said to be a related party. Further, a related party can be the situation when a person or a close member of that person’s family is associated with an entity.
Is section 188 applicable to private companies?
Section 188 is no longer a compliance requirement for Private Limited Companies.
What are the disclosures to be made under Ind AS 18?
What needs to be disclosed under AS 18
- The name of the transacting related party;
- A description of the relationship between the parties;
- A description of the nature of transactions;
- Volume of the transactions either as an amount or a part thereof;
What is the difference between FRS 102 and FRS 102 1A?
FRS 102 1A is for small entities. One of the main features of FRS 102 1A is that fewer disclosures and primary statements are required compared to FRS 102, as only an income statement, balance sheet, and notes to the accounts should be reported.
What makes an entity a related party?
A related party is a person or an entity that is related to the reporting entity: A person or a close member of that person’s family is related to a reporting entity if that person has control, joint control, or significant influence over the entity or is a member of its key management personnel.
What is Section 188 of the Companies Act 2013?
Who are related parties as per Companies Act, 2013?
For the purposes of sub-clause (ix) of clause (76) of section 2 of the Act, a director other than an independent director or key managerial personnel of the holding company or his relative with reference to a company, shall be deemed to be a related party.