Important Points for IC 26 - Life Insurance Finance Exam
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Control means (a) direct or indirect ownership of more than 50% voting power of an enterprise (b) control of the composition of the board of directors or any corresponding governing authority in an enterprise, or (c) a substantial interest in voting power and the power to direct, by statute or agreement, the financial and operating policies of an enterprise.
Significant influence means participation or authority to participate in the financial and operating decisions of an enterprise, but not the control of those policies. Significant influence is presumed to exist if the holding of voting power is 20% or more.
Key management personnel include those persons who have the authority and responsibility for planning, directing and controlling the activities of the reporting enterprise.
Following are not considered to be related parties - Common directors of two or more companies, Economic dependence on a single customer or supplier, Participation in decision making by trade unions, government departments etc.
The Apex accounting body in India, the Institute of Chartered Accountants of India, has taken the initiative in regard to standardizing the Accounting procedure.
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