Accounting standard

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 How to know which Accounting Standards ar applicable to a company.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2013 All accounting Standards are applicable to companies barring AS 3, 17, 21, 23 & 27.

AS 3 & AS 17 (Exemption given to SMC. Applicable only to Non SMC)

AS 21, 23 and 27 are applicable only when relevant regulator requires compliance of these standards

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2013 Criteria for classification of companies under the Companies (Accounting Standards) Rules, 2006

Small and Medium-Sized Company (SMC) as defined in Clause 2(f) of the Companies (Accounting Standards) Rules, 2006:

(f) "Small and Medium Sized Company" (SMC) means, a company—

# whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;

# which is not a bank, financial institution or an insurance company;

# whose turnover (excluding other income) does not exceed rupees fifty crore in the immediately preceding accounting year;

# which does not have borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year; and

# which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

Explanation: For the purposes of clause (f), a company shall qualify as a Small and Medium Sized Company, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period.

Non-SMCs

Companies not falling within the definition of SMC are considered as Non-SMCs.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 Should all the Above conditions be satisfied to be a SMC or any one is enough.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2013 Any one of condition is required to be satisfied. For more details see below link--

https://wirc-icai.org/wirc_referencer/Acconting%20&%20Auditing/Accounting%20Standards.htm

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 What are the requirements of each AS.Can u pls give me a guidance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2013 AS should be complied with in preparation of accounts. In case of any deviation from AS same needs to be reported Audit Report.

You can check the AS from link given below:

https://www.icai.org/post.html?post_id=8660

For Birds Eys View of AS check out below link--

https://www.caclubindia.com/forum/as-1-29-flowchart-birds-eye-view-257066.asp

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