Mr. Rajiv KMP of Raijada Limited received a cheque of 70,000 towards reimbursement of expenses incurred on stay in hotel, conference expenses etc.…
CA Intermediate · Advanced Accounting · RTP · January 2026
Mr. Rajiv KMP of Raijada Limited received a cheque of 70,000 towards reimbursement of expenses incurred on stay in hotel, conference expenses etc. visiting some meeting on behalf of the company. You are required to guide whether the above transaction is covered under AS-18?
Suggested Answer and Working Notes:
As per AS 18 ‘Related Party Disclosures', enterprises over which KMP & its relatives are able to exercise significant influence are related party transactions (Clause D). Thus, as per the facts of the case & provisions of AS, KMP is RP of the company. But, reimbursement is not in the nature of remuneration. Hence, not to be disclosed in Financial Reporting.
Topics: AS 18
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