alleryStart learning →Two companies share one director. Under Ind AS 24 they are:
AAlways related to each other
BNot related for this alone
CRelated if both are listed
DRelated if turnover is equal
Answer & Solution
Correct answer: B. Not related for this alone
A common director alone does not make two entities related; some other relationship such as control or significant influence is needed.
Keep practising Ind AS 24 Related Party Disclosures and Ind AS 108 Operating Segments
Browse all Ind AS 24 Related Party Disclosures and Ind AS 108 Operating Segments questions for CA Final, or explore more Financialreporting topics.
Related questions
The core principle of Ind AS 108 is to help users evaluate the:Where equity-method investments sit in segment assets, the entity discloses:Which item is disclosed if in the decision maker's profit measure?Entities known to be under common control are treated, for major customers, as:Geographical non-current assets exclude:Geographical revenue must be shown for the country of domicile and:Which revenue must be reported for each product or service group?Entity-wide disclosures in paragraphs 32 to 34 apply to: