ICAI issues revised Criteria for classification of Non-company entities for applicability of Accounting Standards issued by it.
The Council of the ICAI at in August 2024, considered the revised criteria for classification of Non-company entities for applicability of Accounting Standards issued by The Institute of Chartered Accountants of India to Non-company entities (Enterprises) and recommended to revise the same. This Announcement supersedes the earlier Announcement of the ICAI on ‘Criteria for classification of Non-company entities for applicability of Accounting Standards issued in March 2021.
The revised scheme for applicability of Accounting Standards to Non-company entities shall come into effect in respect of accounting periods commencing on or after April 1, 2024.
For the purpose of applicability of Accounting Standards, Non-company entities are classified into two categories, viz., Micro, Small and Medium Sized Entities (MSMEs) and Large entities. Certain exemptions/relaxations have been provided to Micro, Small and Medium sized Entity (MSMEs) from Applicability of Accounting Standards. However, large entities are required to comply in full with all the Accounting Standards.
This revised criteria is not relevant for Non-company entities which may be required to follow Indian Accounting Standards (Ind AS) or Accounting Standards (AS) as per relevant regulatory requirements applicable to such entities.
The Accounting Standards issued by ICAI as on April 1, 2024, are:
AS 1 Disclosure of Accounting Policies
AS 2 Valuation of Inventories
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occurring After the 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 Accounting for 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 in Consolidated Financial Statements
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
Read ICAI Announcement Click Here >>
- Two distinct, non-adjacent flats at different floors does not qualify for exemption u/s 54F
- Violation of conditions u/s 13(1)(c) & denial of exemption. SC directs HC to admit appeal
- Quashing of Notice u/s 148 for AO not applying mind to information received – SLP dismissed
- Time limit for issue of notice u/s 143(2) is from the date of filing of original return of income
- Two flats on two different floors not a single dwelling unit – ITAT rejects exemption u/s 54
