Key Management Personnel (KMP) is a group of persons who are responsible for managing the operations of a company. The word ‘personnel’ indicates that it refers to a group of persons rather than one person. They are the decision-makers in a company and are accountable for the errors in the company’s operations. The Board of Directors of a Company are responsible for governing a company, but do not necessarily involve in the day-to-day management. They often meet periodically in Board Meetings to set the management goals. The KMP’s are the ones who actually run the company to achieve the set goals. Accounting Standard 18 (AS-18) defines Key Management Personnel as ‘those persons who have the authority and responsibility for planning, directing and controlling the activities of the reporting enterprise’.