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Which of the following pairs is NOT a related party of the reporting entity under Ind AS 24?
AA customer with whom the entity does a significant volume of business at arm's length
BAn associate of the reporting entity
CKey management personnel of the parent of the reporting entity
DA subsidiary of the reporting entity
Answer & Solution
Correct answer: A. A customer with whom the entity does a significant volume of business at arm's length
Para 11 of Ind AS 24 specifically clarifies that mere economic dependence (e.g., significant volume of business with a customer at arm's length) does not create a related-party relationship. Subsidiaries, associates and KMP of the parent are explicitly within the related-party definition.
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