Accounting standards

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Bhaskaran Chackrapani Warrier (Querist)
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30 October 2008 Is AS 18 applicable in financial year 2007-08 for a private limited company having authorised and paid up capital of Rs. 10/-lakhs.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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31 October 2008 The criteria for applicability of AS18 for all commercial industrial and business enterprises meeting any one of these:

1)Borrowings in excess of Rs 10cr.
2)Turnover (excluding other income) in excess of Rs 50 Cr.
3)Holding company of companies meeting 1)and 2).
4)Banking or insurance business.

It is not based on privte ltd or equity capital based.

CA Bosu babu

CA Bosu babu (Expert)
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31 October 2008 This
Standard ismandatory in nature2 in respectof accountingperiods commencing
on or after 1-4-20043 for the enterprises which fall in any one or more of the
following categories, at any time during the accounting period:
(i) Enterprises whose equity or debt securities are listed whether in
India or outside India.
(ii) Enterprises which are in the process of listing their equity or debt
securities as evidenced by the board of directors’ resolution in
this regard.
(iii) Banks including co-operative banks.
(iv) Financial institutions.
(v) Enterprises carrying on insurance business.
(vi) 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.
Turnover does not include ‘other income’.
(vii) All commercial, industrial and business reporting enterprises having
borrowings, including public deposits, in excess ofRs. 10 crore at
any time during the accounting period.
(viii) 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.

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