Applicability of AS 18

Company Secretary and AVP Legal


Dear Professional friends

As per AS 18 available on icai.com, AS 18 is applicable to following companies:
1.       Enterprises whose equity or debt securities are listed whether in India or outside India.
2.       Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors’ resolution in this regard.
3.       Banks including co-operative banks.
4.       Financial institutions.
5.       Enterprises carrying on insurance business.
6.       All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crore.
7.       Turnover does not include ‘other income’.
8.       All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess ofRs. 10 crore at any time during the accounting period.
9.       Holding and subsidiary enterprises of any one of the above at any time during the accounting period.
 
The enterprises which do not fall in any of the above categories are not required to apply this Standard.
  
Is there any change in the above criteria?
Since my company donot fall in any of the above categories, then can I say that AS 18 is not applicable.
Please reply asap
Regards
Malav
 
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CA in Practice



There is no change in AS - 18


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Company Secretary and AVP Legal


Mr. Aditya

thanks for reply.

My Statutory Auditor says AS 18 is applicable to all the Companies. My company have turnover less than 50 crores and no borrowings. We are neither listed  nor a bank nor Financial institution nor insurance business nor we are subsiduary of any company.

Then is AS 18 is applicable to us. Our Auditors says it is applicable.

Please provide your opinion.

Regards

Malav

 
Reply   
 
articled clerk



Your Statutory Auditor is correct in saying that AS 18 is applicable. As per companies accounting standard rules 2006, AS 18 is applicable for all the companies, Which is in contradiction of AS 18. Users of account is restricted in case of level 2 and level 3 enterprise, but still you will be requiring to diclose as it is mandated by Companies rule.


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Company Secretary and AVP Legal


 thanks 

Malav

 
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Artical Clearck



can any one tell me that sa 18 is applicable for all companies

from 01.04.2009 or 01.04.2010

please reply iam weting

prakash

 
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student



As per AS-18 can we show the debit and credit balances of the same person by giving net effect i.e net amount or both balances should be shown separately

regards

Deep

 
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Is As 18 applicable to limited liability partnership?? 

 
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Student CA IPC / IPCC



Is AS 18 applicable to trusts?

 
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