Important Points for IC 26 - Life Insurance Finance Exam
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Gross book value of a fixed asset is its historical cost or other amount substituted for historical cost in the books of account or financial statements. When this amount is shown net of accumulated depreciation, it is termed as net book value.
Para 3 of this accounting standard specifies certain relationships, which are termed to be related parties. The related party relationships between various enterprises are determined on the following basis - Control aspect, Associate/Joint Venture, Ownership, Key management personnel & (e) Significant influence
Relative in relation to an individual means the spouse, son, daughter, brother, sister, father and mother, who may be expected to influence, or be influenced by that individuals in his dealings with the reporting enterprise.
Related party is a party which has the ability to control the order party of exercise significant influence over the other party in making financial and / or operating decisions.
Related party transaction is a transfer of resources or obligations between related parties, regardless of whether or not a price is charged.
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