Related party relationships and transactions are a common feature of business operations and, if not appropriately identified and disclosed, may affect the users' understanding of an entity's financial position, performance and cash flows. Ind AS 24 plays a critical role in enhancing transparency by prescribing principles for identification of related parties and specifying disclosure requirements in respect of related party relationships, transactions and outstanding balances, including commitments.

This Educational Material on Ind AS 24 elucidates the fundamental concepts of related parties and detailed disclosures of transactions and balances with them. It addresses all relevant aspects envisaged in the Standard by way of brief summary of the Standard and frequently asked questions (FAQs) on practical issues that the preparers of the financial statements face while applying this Ind AS.

Relevant link to download the Educational Material: https://resource.cdn.icai.org/91115asb-aps4303-indas-24.pdf