alleryStart learning →Without related party disclosures, users presume transactions are on what basis?
AConcessional basis
BArm's length basis
CBarter basis
DCost plus basis
Answer & Solution
Correct answer: B. Arm's length basis
Users normally assume deals are between independent parties at arm's length, which may be untrue when parties are related.
Keep practising AS 18 Related Party Disclosures
Browse all AS 18 Related Party Disclosures questions for CA Inter, or explore more Accounting topics.
Related questions
An enterprise is deemed able to appoint a director if the director is what?If a regulator prohibits some required disclosure, AS 18 says what?Significant influence may be gained by share ownership, statute or what?An investor with under 20 percent voting power is presumed to have what?Which is cited as a way of exercising significant influence?An intermediary is a subsidiary as defined in which standard?Which of these is usually key management personnel in a company?Enterprises owned by directors or major shareholders are what under AS 18?