Accounting standards

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mohit sethia (Querist)

08 June 2013 Please Can anyone explain me what is the difference between SMC & SME in Accounting Standard, and Which are Covered Under Level-I & Level-II Category ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

16 June 2013 Level I Entities

Non-corporate entities which fall in any one or more of the following categories, at the end of the relevant accounting period, are classified as Level I entities:

Entities whose equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India.

Banks (including co-operative banks), financial institutions or entities carrying on insurance business.

All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees fifty crore in the immediately preceding accounting year.

All commercial, industrial and business reporting entities having borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year.

Holding and subsidiary entities of any one of the above.

Level II Entities (SMEs)

Non-corporate entities which are not Level I entities but fall in any one or more of the following categories are classified as Level II entities:

All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees forty lakh but does not exceed rupees fifty crore in the immediately preceding accounting year.

All commercial, industrial and business reporting entities having borrowings (including public deposits) in excess of rupees one crore but not in excess of rupees ten crore at any time during the immediately preceding accounting year.

Holding and subsidiary entities of any one of the above.

Level III Entities (SMEs)

Non-corporate entities which are not covered under Level I and Level II are considered as Level III entities.

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