Accounting Standards for Sole Trader, LLP, HUF, OPC, Private Limited Company and Public Limited Comp

1) Accounting Standard ( ICAI ) Non Corporate entities

2) Indian Accounting Standard ( MCA ) Corporate entities

For Non Corporate entities Accounting Standard issued by ICAI are applicable. Non Corporate entities are divided in to 4 Catagories 1) Level I , 2)Level Ii 3) Level III 4) Level IV based on Turnover, So any non corporate entity in Level I catagory all accounting standards are applicable, however certain relaxation is given to Level Ii, III , IV Catagory.

For Corporate entities like , PVt LTD companies, Public Ltd Companies, Banking Companies, Insurance Companies. NBFC etc Indian Accounting Standard issued by MCA are applicable.

Tnks Sir for your kind help

Tnks Sir for your kind help

 

ICAI's framework for non-company entities:

• ICAI's Accounting Standards apply to non-corporate entities (sole proprietors, firms, LLPs, HUFs, trusts) engaged in commercial, industrial or business activities, with relaxations by size. Since 2020, they're classified as MSMEs (Level II, III, IV) and large (Level I), based on turnover and borrowings.

• Level I (turnover above Rs 250 crore or borrowings above Rs 50 crore, or listed) must follow all AS in full. Levels II–IV get exemptions or relaxations (e.g. AS 3 cash flow, AS 17 segment, AS 20 EPS, AS 24, and parts of AS 15, 19, 28, 29).

• Proprietors and HUFs not in business (only investments) aren't covered.

• Income-tax: ICDS applies to business income computation for those following the mercantile system (except individuals or HUFs not under tax audit).

• LLPs follow ICAI AS (not Ind AS) unless they are a subsidiary of an Ind AS company and choose otherwise.