what is the applicabilty of AS-3 i.e. Cash Flow statement.? for which co it is necessary to prepare while preparing financial statement of co?
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AS-3
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AS3 applies to every Level-1 enterprises and Non SMCs (Small & Medium Co.s).
Level-1 enterprises imply all the entities whose stocks (debt/equity) are listed whether in India or abroad. and includes banks, FIs & insurance Co.s
Co.s following SEBI guidelines compulsorily need to follow AS3.
AS 3 applicable to Level 1 enterprises.
Level 1 means:
Enterprise whose equity or debt services are listed wheter in india or outside
in the process of listing
banks, financial insititutions, insurance business
enterprises whose trunorver in preceding accounting period exceeds 50 crores
enterprises with borrowings including public deposits exceeds 10 crore at any time during hte yr
holding and subsidiery com of any one of the above
exact copy of AS3
| Originally posted by :Annie | ||
| " | AS 3 applicable to Level 1 enterprises. Level 1 means: Enterprise whose equity or debt services are listed wheter in india or outside in the process of listing banks, financial insititutions, insurance business enterprises whose trunorver in preceding accounting period exceeds 50 crores enterprises with borrowings including public deposits exceeds 10 crore at any time during hte yr holding and subsidiery com of any one of the above |
" |
AS3 applies to every Level-1 enterprises and Non SMCs
EXTRACTS FROM AS-3 ISSUED BY ICAI Accounting Standard (AS) 3 is mandatory in nature in respect of accounting periods commencing on or after 1-4-2004 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 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 of Rs. 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 encouraged, but are not required, to apply this Standard.
AS-3 is a part of financial statement so its compulsory
This is reply tp CA Amit Daga that AS-3 is part of financial statement for those on whom it is compulsory . For others , it is PURELY OPTIONAL
hi piyush
this is dharmender ca student in my knowledge AS-3 is Mandatory for all Level I enterprises Which Company Hv Loan Upto 10 Crore & yearly turnover upto 50 Crore.
If a company borrow loan from Holding company or from director which is more than 10 crores will it attract cash flow
Listing requirement of SEBI in clause 32 requires the preparation of CFS(AS-3 Revised) by entities under level 1.others on optional basis.
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