AS 18

Accounting Standard in India 18 – Simple explanation (AS 18 ) Related party disclosures Accounting standard 18 states that all related parties who are connected to your business with different financial transaction. Then it is the duty of accountant to disclose these financial transactions for public by making related parties report. I can explain it with simple example: suppose one company contracted with other company for control on the new investing business and they agreed to invest Rs. 1 crore as joint venture. Now it is the duty of board of directors to disclose it in their financial statement by making related parties reporting. The following matter must be written in the report :- I ) Nature of relationship II ) Current and future agreement with related parties relating to providing of goods , services or loan or investment .