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R Ltd. has an associate B Ltd. B Ltd. has a subsidiary S Ltd., a joint venture J Ltd. and an associate A Ltd. From R Ltd.'s perspective, who are related parties under Ind AS 24?
AB Ltd., S Ltd., J Ltd. and A Ltd.
BB Ltd., S Ltd. and J Ltd.
CB Ltd. only — the standard does not extend through an associate
DB Ltd. and S Ltd. only
Answer & Solution
Correct answer: D. B Ltd. and S Ltd. only
The Standard expands the definition so that an associate includes its subsidiaries and a joint venture includes its subsidiaries. So B Ltd. (R's associate) and S Ltd. (B's subsidiary, treated as part of the associate) are related to R Ltd. J Ltd. (joint venture of an associate) and A Ltd. (associate of an associate) are NOT included — the rule does not chain further through joint ventures or associates of an associate.
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