Applicability of various Accounting Standards and Ind AS

 Applicability of various Accounting Standards and Ind AS

Coverage

1. List of Accounting Standard 
2. Applicability of Accounting standard
3. IND AS
4. Applicability if IND AS
5. Clasification of Enterprises (level I, Level II, Level III)

List of ICAI’s Mandatory Accounting Standards (AS 1~29)

Download PDF copy of Mandatory Accounting Standards of ICAI (as on 1 July 2017 and onwards), as under:

• AS 1 Disclosure of Accounting Policies
• AS 2 Valuation of Inventories
• AS 3 Cash Flow Statements
• AS 4 Contingencies and Events Occurring After Balance Sheet Date
• AS 5 Net profit or Loss for the period, Prior Period Items and Changes in Accounting Policies
• AS 7 Construction Contracts
• AS 9 Revenue Recognition
• AS 10 Property, Plant and Equipment
• AS 11 The Effects of Changes in Foreign Exchange Rates
• AS 12 Government Grants
• AS 13 Accounting for Investments
• AS 14 Accounting for Amalgamations
• AS 15 Employee Benefits
• AS 16 Borrowing Costs
• AS 17 Segment Reporting
• AS 18 Related Party Disclosures
• AS 19 Leases
• AS 20 Earnings Per Share
• AS 21 Consolidated Financial Statements
• AS 22 Accounting for Taxes on Income
• AS 23 Accounting for Investments in Associates
• AS 24 Discontinuing Operations
• AS 25 Interim Financial Reporting
• AS 26 Intangible Assets
• AS 27 Financial Reporting of Interests in Joint Ventures
• AS 28 Impairment of Assets
• AS 29 Provisions, Contingent Liabilities and Contingent Assets

Applicability of Accounting standards

Accounting Standard	Level I	Level II	Level III
AS 1 Disclosure of Accounting Principles	Yes	Yes	Yes
AS 2 Valuation of Inventories	Yes	Yes	Yes
AS 3 Cash Flow Statements	Yes	No	No
AS 4 Contingencies and Events Occurring After the Balance Sheet Date	Yes	Yes	Yes
AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies	Yes	Yes	Yes
AS 6 Depreciation Accountin	Ye	Ye	Ye
AS 7 Construction Contracts (Revised 2002)	Yes	Yes	Yes
AS 9 Revenue Recognition	Yes	Yes	Yes
AS 10 Accounting for Fixed Assets	Yes	Yes	Yes
AS 11 The Effects Of Changes In Foreign Exchange Rates (Revised 2003)	Yes	Yes	Yes
AS 12 Accounting for Government Grants	Yes	Yes	Yes
AS 13 Accounting for Investments	Yes	Yes	Yes
AS 14 Accounting for Amalgamations	Yes	Yes	Yes
AS 15 Employee Benefits (Revised 2005)	Yes	Yes	Yes
AS 16 Borrowing Costs	Yes	Yes	Yes
AS 17 Segment Reporting	Yes	No	No
AS 18 Related Party Disclosures	Yes	No	No
AS 19 Leases	Yes	Partial	Partial
AS 20 Earnings Per Share	Yes	Partial	Partial
AS 21 Consolidated Financial Statements	Yes	No	No
AS 22 Accounting for taxes on income	Yes	Yes	Yes
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements	Yes	No	No
AS 24 Discontinuing Operations	Yes	No	No
AS 25 Interim Financial Reporting	Yes	No	No
AS 26 Intangible Assets	Yes	Yes	Yes
AS 27 Financial Reporting of Interests in Joint Ventures	Yes	No	No
AS 28 Impairment of Assets	Yes	Yes	Yes
AS 29 Provisions, Contingent Liabilities and Contingent Assets	Yes	Partial	Partial

1. AS 19 Leases

Paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e), of AS 19 does not apply to Level II and Level III enterprises

2. AS 20 Earnings Per Share

The provisions of Part IV of Schedule VI to the Companies Act, 1956 require all companies to disclose earning per share in their financial statements.

AS 2o does not mandate disclosure of diluted earning per share and information required by paragraph 48 for Level II and Level III enterprises.

Hence only Level I enterprises are required to apply AS 20 entirely without any relaxations.

3. AS 29, Provisions, Contingent Liabilities, and Contingent Assets

• Paragraph 67 does not apply to Level II enterprises
• Paragraphs 66 and 67 does not apply to Level II and Level III enterprises

Indian Accounting Standards (IND ASs)

These are the converged Indian Accounting Standards (Ind ASs) hosted by MCA on its website. The date on which these will come into force is yet to be notified. Any changes in the Ind AS vis. a vis. corresponding IAS/IFRS are given in Appendix 1 appearing at the end of each Ind AS.

1. Framework for the Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards 2. Ind AS 101 First-time Adoption of Indian Accounting Standards 3. Ind AS 102 Share based Payment 4. Ind AS 103 Business Combinations 5. Ind AS 104 Insurance Contracts 6. Ind AS 105 Non current Assets Held for Sale and Discontinued Operations 7. Ind AS 106 Exploration for and Evaluation of Mineral Resources 8. Ind AS 107 Financial Instruments: Disclosures 9. Ind AS 108 Operating Segments 10. Ind AS 1 Presentation of Financial Statements 11. Ind AS 2 Inventories 12. Ind AS 7 Statement of Cash Flows 13. Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors 14. Ind AS 10 Events after the Reporting Period 15. Ind AS 11 Construction Contracts 16. Ind AS 12 Income Taxes 17. Ind AS 16 Property, Plant and Equipment 18. Ind AS 17 Leases 19. Ind AS 18 Revenue 20. Ind AS 19 Employee Benefits 21. Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance 22. Ind AS 21 The Effects of Changes in Foreign Exchange Rates 23. Ind AS 23 Borrowing Costs 24. Ind AS 24 Related Party Disclosures 25. Ind AS 27 Consolidated and Separate Financial Statements 26. Ind AS 28 Investments in Associates 27. Ind AS 29 Financial Reporting in Hyperinflationary Economies 28. Ind AS 31 Interests in Joint Ventures 29. Ind AS 32 Financial Instruments: Presentation 30. Ind AS 33 Earnings per Share 31. Ind AS 34 Interim Financial Reporting 32. Ind AS 36 Impairment of Assets 33. Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets 34. Ind AS 38 Intangible Assets 35. Ind AS 39 Financial Instruments: Recognition and Measurement 36. Ind AS 40 Investment Property 37. Comparison of IFRS as applicable on 1st April 2011 with Ind AS placed at MCA’s website

 Specific Companies – On which IND AS is applicable

1. Any Company which voluntary opts for Ind AS ( from 01.04.2015)

2. Any

a. listed company or company in process of listing having net worth of 500 crores or more, or

b. unlisted companies having net worth of 500 crores or more, or

c. holding, subsidiary of any of the above company.

On these companies, IND AS is mandatorily applicable from 01.04.2016

3. Any

a. listed company or company in process of listing, or

b. unlisted company having net worth of 250 crores or more but upto 500 crores, or

c. holding, subsidiary of any of the above company.

On these companies, IND AS is mandatorily applicable from 01.04.2017

Specific company excludes Banking Company & Insurance Companies.

Net worth is calculated every year and if the limit crosses, it becomes Specific Company from the next day.

But once a company becomes a Specific Company, then it will always remain a Specific Company.

Annexure I

Criteria for classification of enterprises

Level I Enterprises

Enterprises which fall in any one or more of the following categories, at any time during the accounting period, are classified as Level I enterprises: Enterprises whose equity or debt securities are listed whether in India or outside India. Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors' resolution in this regard. Banks including co-operative banks. Financial institutions. Enterprises carrying on insurance business. 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'. 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. Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

Level II Enterprises

Enterprises which are not Level I enterprises but fall in any one or more of the following categories are classified as Level II enterprises: All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 40 lakhs but does not exceed Rs. 50 crore. Turnover does not include 'other income'. All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 1 crore but not in excess of Rs. 10 crore at any time during the accounting period. Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

Level III Enterprises

Enterprises which are not covered under Level I and Level II are considered as Level III enterprises.