The Institute has issued Accounting
Standard (AS) 18, Related Party Disclosures (published in the
October 2000, issue of the Institute’s Journal ‘The Chartered
Accountant’). AS 18 has come into effect in respect of accounting
periods commencing on or after 1-4-2001 and is mandatory in nature
for all enterprises.
The Council, at its 224th meeting,
held on March 8-10, 2002, reconsidered the applicability of AS
18. The Council decided to make AS 18 mandatory only to the following
enterprises and not to all enterprises as at present:
-
Enterprises whose equity or debt
securities are listed on a recognised stock exchange in India,
and enterprises that are in the process of issuing equity
or debt securities that will be listed on a recognised stock
exchange in India as evidenced by the board of directors’
resolution in this regard.
-
All other commercial, industrial
and business reporting enterprises, whose turnover for the
accounting period exceeds Rs. 50 crores.
