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Accounting Standard

Anil Joshi (Professor) (43 Points)

11 June 2018

Are there any categories of companies to which accounting standards are not applicable?

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14242 Points)
Replied 11 June 2018

1)company having net worth below 250 crore shall not apply IND- As .

2) company listed on SME exchange not requried to apply IND- As

3) NBFC (Non banking financial companies ) having net worth below 250 crore shall not apply IND -AS

4) Urban co-op banks & Regional rural banks are not applicable to apply Ind AS

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Kartikey Jain (Intern) (2377 Points)
Replied 11 June 2018

I would like to add to the answer of Prasad Nilugal. If any company fulfills all the following conditions:

net worth < 250 crores and
neither listed and nor is in the process of listing
Sales <= 50 crores in the previous year
Borrowing <= 10 crores at any time in the previous year

then it shall be classified as a SME and shall be exempted from the application of AS 3 & 17 and the application of AS 15,19,20,28 & 29 shall be partially exempted as per Companies (Accounting Standards) Rules, 2006.

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Anil Joshi (Professor) (43 Points)
Replied 12 June 2018

Ok. In redemption of preference shares, the act states that if the companies are governed by accounting standards then premium on redemption of preference shares cannot be met out of securities premium balance. So which are such companies and what is the logic behind this clause?