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Accounting Standard
Are there any categories of companies to which accounting standards are not applicable?
Replies (3)
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
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.
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?
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