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Under Ind AS 24, an entity may aggregate related-party transactions of a similar nature for disclosure UNLESS:
AThe transactions are entered into on arm's-length terms with the related party
BThe aggregate value exceeds ₹10 lakhs in the reporting period
CAggregation would obscure the importance of a material individual transaction
DThe transactions are entered into with the parent of the reporting entity
Answer & Solution
Correct answer: C. Aggregation would obscure the importance of a material individual transaction
Para 24 of Ind AS 24 permits aggregation by type of related party, except where separate disclosure is necessary to understand the effect on the financial statements — i.e., where aggregation would hide a material individual transaction. Materiality (not quantum thresholds, counterparty type, or arm's-length nature) drives the carve-out.
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