The document discusses the disclosure requirements for related party transactions under the Indian accounting standard AS-18. It defines related parties as individuals or entities that have the ability to control or exercise significant influence over the reporting entity. It requires disclosure of the nature and volume of transactions between the reporting entity and its related parties, as well as outstanding balances and any provisions for doubtful debts involving such parties. The disclosures are necessary because related party transactions may not be conducted under normal commercial terms.

1. Related Party Disclosures (AS –18) PHD Chambers of Commerce and Industry “ Corporate Financial Reporting and Changing Paradigms” 23 February 2002

21. Other disclosure issues Items of a similar nature may be disclosed in aggregate by type of related party . XYZ Ltd. Rs. Sales to ABC Ltd., a subsidiary 100,000 Sales to DEF Ltd., a subsidiary 200,000 Purchases from GHI, a joint venture company 300,000 Purchases from ABC Ltd., a subsidiary 400,000 Disclosure: Sales to subsidiaries 300,000 Purchases from subsidiaries 400,000 Purchases from joint venture companies 300,000