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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:

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
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
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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.




 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:
  1. Enterprises whose equity or debt securities are listed whether in India or outside India.
  2. Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors' resolution in this regard.
  3. Banks including co-operative banks.
  4. Financial institutions.
  5. Enterprises carrying on insurance business.
  6. 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'.
  7. 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.
  8. 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:
  1. 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'.
  2. 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.
  3. 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.











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