CA Intermediate Paper 1

AS 18 - Related Party Disclosures MCQ

Chapter 7 • 3 Questions from ICAI Study Material

Questions

3

Est. Time

5 min

Source

ICAI Book

Sample Questions: AS 18 - Related Party Disclosures

Preview 3 of 3 questions from Chapter 7

1. According to AS-18 Related Party Disclosures, which ONE of the following is not a related party of Skyline Limited?

A) A shareholder of Skyline Limited owning 30% of the ordinary share capital
B) An entity providing banking facilities to Skyline Limited in the normal course of business ✓
C) An associate of Skyline Limited
D) Key management personnel of Skyline Limited

2. Are the following statements in relation to related parties true or false, according to AS-18 Related Party Disclosures?

A) A party is related to another entity that it is jointly controlled by.
B) A party is related to another entity that it controls. Statement (A) Statement (B) (a) False False (b) False True
C) True False
D) True True ✓

3. Which of the following is not a related party as envisaged by AS-18 Related Party Disclosures?

A) A director of the entity
B) The parent company of the entity
C) A shareholder of the entity that holds 1% stake in the entity ✓
D) The spouse of the managing director of the entity