Ind AS 24
Related Party Disclosures

Updated analysis: building an auditable related-party disclosure schedule

Added and reviewed on 11 October 2026. This section adds a practitioner workflow to the standard-by-standard guide above: how to build, reconcile and sign off the related-party schedule. Where the two differ, follow the standard and the latest ICAI material.

Identify the relationship before counting invoices

Start with the entity’s ownership, control, joint-control and significant-influence structure. Then obtain lists of key management personnel, their close family members where relevant, and entities affected by those relationships as defined under the standard. Capture the nature of each relationship and evidence from share registers, declarations, organisation charts and control agreements. Business partners with common surnames are not related parties merely because they appear connected; conversely some relationships exist even without any transaction.

Build the transaction register as a multi-dimensional schedule

For each counterparty record its legal name, identification number, relationship category, beginning and ending balance, sales, purchases, management charges, lease arrangements, finance, guarantees, compensation and other transfers of resources, services or obligations. Flag whether pricing is contractually documented. Transactions can occur without consideration; a no-charge corporate guarantee can still be a related-party transaction requiring careful disclosure assessment.

Separate outstanding balances from period flows

A ₹10-lakh service fee recorded during the year and a ₹6-lakh closing payable are not alternative figures: both may need disclosure with terms and conditions. Capture whether balances are secured, settlement terms, guarantees given or received, commitments and impairment-related amounts to the extent required. Loans require opening principal, new drawdowns, repayments, interest and closing outstanding. Where different entity codes disguise the same counterparty, create an identity bridge rather than duplicating the counterparty.

Compensation of key management needs its own bridge

Employee payroll may fail to capture stock-based payments, employer benefit obligations or compensation from another group entity. Prepare a schedule consistent with Ind AS 24 compensation categories and include appropriate remuneration disclosures. Do not assume that a director’s expenses are automatically part of remuneration or that every director-related reimbursement has the same accounting treatment. Reconcile compensation to payroll, stock-option records and directors’ declarations.

Distinguish GAAP disclosures from corporate approvals

Ind AS 24 is an accounting disclosure standard. Section 188 of the Companies Act and, for applicable listed entities, SEBI rules may impose approval and governance requirements through separate tests. One register can support both, but the definitions and exemptions must not be assumed identical. Add independent columns for accounting related-party classification, corporate-law approval and any market-regulator disclosure obligations.

Assess consolidation effects carefully

Intra-group items are generally eliminated in consolidated financial statements in accordance with consolidation requirements, but separate financial statements of each entity can still require transactions and balances to be disclosed. Identify the reporting entity before deciding the disclosure treatment. Transactions with a parent, subsidiary, associate, joint venture or KMP require the exact relationship classification; the mere fact that a balance cancels in consolidation is not proof that it should disappear from every disclosure.

Make the disclosure schedule auditable

Reconcile counterparty totals to general ledger, intercompany confirmations, board minutes, statutory registers, commitments and contingent liability assessments. Add an exception register for missing terms, unsupported interest rates, unconfirmed advances and unrecorded guarantees. Sign off the population, not just the final note. ICAI’s February 2026 educational material specifically addresses practical questions on transactions, balances and relationships and is a useful primary benchmark for preparing the review file.

Practitioner action checklist

1. Map control, influence, KMP and relevant family relationships.
2. Record all transaction categories, commitments and closing balances.
3. Obtain terms, security, guarantees and impairment evidence.
4. Reconcile disclosure totals to the GL and confirmations.
5. Perform separate Companies Act and SEBI governance checks.

Questions readers ask

Do no-charge arrangements count as transactions?

They can: a transfer of resources, services or obligations may qualify even without a stated price.

Must an entity disclose a relationship without purchases?

Certain control relationships require disclosure regardless of whether transactions occurred.

Is every employee related to the entity?

No; evaluate key management and the standard’s particular criteria.

Can a single Schedule III note replace Ind AS 24 analysis?

No. Format compliance does not replace identification, classification and full disclosure requirements.

Are related-party balances only year-end totals?

Disclose relevant period transactions and balances/terms separately.

Does a related-party agreement prove arm’s-length pricing?

An agreement supports documentation but not independent validation of pricing or other statutory approvals.

Official sources for this update

• ICAI: Educational Material on Ind AS 24, Related Party Disclosures (February 2026)
• ICAI: Compendium of Indian Accounting Standards 2025-26, Volume II
• Companies Act, 2013: consolidated text, section 188 (India Code, PDF)

Related reading on Finin2min

• Related Party Transactions under Companies Act: Section 188 Approvals, Registers and Disclosures
• Related-Party Balance Confirmation Difference
• Related Party Transaction Schedule: AS 18 Evidence File
• Intercompany Reconciliation Close File