As an auditor you came across a situation where related party transactions have taken place. Which AS deals with it?
Related party transactions are covered under Accounting Standard (AS) 18, which is titled "Related Party Disclosures." AS 18 provides guidelines for identifying and disclosing transactions between an entity and its related parties in the financial statements. The standard outlines the definitions of related parties and the disclosures that need to be made in the financial statements to ensure transparency and proper representation of the financial position and performance of the entity.
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