Mr. Atul is an independent director of X Ltd. and received a sitting fee of ₹2 lakhs per meeting for 5 Board meetings attended in the year. The Accountant of X Ltd. argues that since independent directors are not employees of the company, their fees need not be disclosed under Ind AS 24. The correct treatment is:

Para 9 of Ind AS 24 defines KMP as persons having authority and responsibility for planning, directing and controlling activities — INCLUDING any director (executive or otherwise). Independent and non-executive directors are within KMP. Sitting fees are short-term employee benefits under Ind AS 19 (payable within 12 months) and must be disclosed under para 17.