AS 18 - Related Party Disclosures MCQ

Question 1

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

C) An associate of Skyline Limited

D) Key management personnel of Skyline Limited

Answer

B) An entity providing banking facilities to Skyline Limited in the normal course of business ✓

Question 2

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

Answer

D) True True ✓

Question 3

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

D) The spouse of the managing director of the entity

Answer

C) A shareholder of the entity that holds 1% stake in the entity ✓

Sample Questions: AS 18 - Related Party Disclosures