WEEKLY ASSIGNMENT

    SLAS 30 (RELATED PARTY DISCLOSURE)

01. What is related party?

       Parties are considered to be related if one party has ability to control the other party

       or exercise significant influence over the other party in making financial and other

       operational decision.

02. How can you define the word “control”?

      Ownership directly or indirectly through subsidiaries, or more than one half of the               

       Voting power of an enterprice, or substantial interest in voting power and the power                

       to direct ,by the statute or agreement ,the financial and operating policies of the        

       Management of the enterprise.

03. Which kind of  relationship are not related parties?

       a) Two companies simply  because they have a director in common.

       b) provider of finance,trade union,public utilities, government departments

            angencies,in the course of their normal dealings with an enterprise by virtue

            only of those  dealing

       c) a single customer,supplier,franchisor,distributor or general agent with whom

           an enterprise transact a significant volume of business merely by virtue of the

           resulting economic dependence

04. What are the disclosure requirement of related party ?

      In particularly we should pay attention for

• their remuneration and borrowings

          Because of the fiduciary nature of their relationship with the enterprise.

        • purchases or sales of goods (finished or unfinished)

        • purchases or sales of property and other assets

        • rendering or receiving of services

        • agency arrangements

        • leasing arrangements

        • transfer of research and development

        • licence agreements

        • finance (including loans and equity contributions in cash or in kind)