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CA Inter AS 18 Related Party Disclosures — practice questions

Explore 44 free AS 18 Related Party Disclosures questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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AS 18 Related Party Disclosures questions and exercises with answers

Showing questions 1–30 of 44.

Under AS 18, parties are related if one can control the other or exercise what over it?Read the answer and worked solution →A transfer of resources between related parties, priced or not, is called what?Read the answer and worked solution →Ownership of more than what share of voting power amounts to control under AS 18?Read the answer and worked solution →A substantial interest in voting power under AS 18 means owning at least what?Read the answer and worked solution →Who are key management personnel under AS 18?Read the answer and worked solution →A non-executive director is key personnel only with what?Read the answer and worked solution →Two companies that are subsidiaries of the same holding company are called what?Read the answer and worked solution →Significant influence, but neither a subsidiary nor a joint venture, describes what?Read the answer and worked solution →A contractual arrangement for an economic activity under joint control is what?Read the answer and worked solution →A contractually agreed sharing of power to govern policies is called what?Read the answer and worked solution →A company is a subsidiary if another holds over what part of its equity capital?Read the answer and worked solution →An enterprise controls a board if it can appoint or remove what share of directors?Read the answer and worked solution →Does a common director alone make two companies related parties?Read the answer and worked solution →Is a large supplier a related party merely from economic dependence?Read the answer and worked solution →Which party is deemed not related solely through normal dealings under AS 18?Read the answer and worked solution →AS 18 disclosures do not apply where they breach a duty of what?Read the answer and worked solution →Which kind of entity does AS 18 cite as bound by law to keep customer dealings confidential?Read the answer and worked solution →Are intra-group dealings disclosed in consolidated statements?Read the answer and worked solution →AS 18 also applies to consolidated statements presented by whom?Read the answer and worked solution →AS 18 sets disclosure rules for related party relationships and what else?Read the answer and worked solution →When must a controlling party be named in the statements?Read the answer and worked solution →Which item is not required in AS 18 disclosure of related deals?Read the answer and worked solution →Volume of transactions may be shown as an amount or as what?Read the answer and worked solution →Outstanding balances with related parties are disclosed with provisions for what?Read the answer and worked solution →Amounts written off or back are disclosed for debts due to or from whom?Read the answer and worked solution →Which is cited in AS 18 as an example of a related party transaction?Read the answer and worked solution →AS 18 lists leasing and which other arrangement as an example transaction?Read the answer and worked solution →Similar related party items may be shown in aggregate by what?Read the answer and worked solution →May purchases of goods be aggregated with purchases of fixed assets?Read the answer and worked solution →Ordinarily, a transaction above what share of same-type related dealings is material?Read the answer and worked solution →

Worked practice questions

Under AS 18, parties are related if one can control the other or exercise what over it?

  1. Statutory audit rights
  2. Significant influence
  3. Dividend priority rights
  4. Joint tenancy rights
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Correct answer: B. Significant influence

Related status arises when one party can control the other or exert significant influence on its financial or operating decisions.

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A transfer of resources between related parties, priced or not, is called what?

  1. Related party transaction
  2. Contingent transfer
  3. Arm's length sale
  4. Intra-group set-off
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Correct answer: A. Related party transaction

The standard treats any transfer of resources or obligations between related parties as a related party transaction even when no price is charged.

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Ownership of more than what share of voting power amounts to control under AS 18?

  1. Twenty percent
  2. Two thirds
  3. One quarter
  4. One half
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Correct answer: D. One half

Control under the standard exists when an investor owns more than one half of the voting power of the enterprise.

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