Applicability of Accounting standards – Complete Guide

Accounting Standards

Applicability of Accounting standards – Complete Guide. Here we are providing Full guide for Applicability of Accounting standards. Recently we have provided Accounting Standard 1 Full guide and also provided Accounting Standard 26, and 22 in our last articles. Now we provide best guide for Applicability of Accounting standards in India. Now you can scroll down below and check complete details for “Applicability of Accounting standards”

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Applicability of Accounting standards

Hello everyone….Here in this article I’m going to discuss a few lines about the applicability of accounting standards…

First of all we should know the classification of non corporate entities as decided by ICAI.

Level-1 entities:

Non corporate entities which fall in any one of the following categories at the end of relevant accounting year are called as level-1 entities:

1.Entities whose equity or debt securities are listed or in the process of listing with any stock exchange whether in India or abroad.

2.Banks, financial institutions or entities carrying in insurance business

3.All commercial, industrial and business reporting entities whose turnover is greater than 50 crores in the immediately preceding accounting period. Here other income is to be ignored in calculation of turnover.

4.All commercial, industrial and business reporting entities whose borrowings including public deposits in excess of 10 crores at any time during the immediately preceding accounting year.

5.Subsidiary or holding entities of any of the above.

Level-2 entities:

Non corporate entities which are not covered in any of the above categories and fall any one of the following categories are level-2 entities.

1.All industrial, commercial and business reporting entities whose turnover exceeds rupees 10 crores but doesn’t exceed rupees 50 crores in the immediately preceding accounting year.

2.All commercial, industrial and business reporting entities whose borrowings including public deposits are above 1 crore but doesn’t exceed 10 crores at any time during the immediately preceding accounting year.

3.Holding and subsidiary entities of any one of the above.

Level-3 entities:

Non corporate entities which are not covered under level-1 and level-2 are considered as level-3 entities.

Applicability of AS:

AS NO.  Applicability 
AS-1 All entities
AS-2 All entities
AS-3 Level-1
AS-4 All entities
AS-5 All entities
AS-6 All entities
AS-7 All entities
AS-8 Not in existence
AS-9 All entities
AS-10 All entities
AS-11 All entities
AS-12 All entities
AS-13 All entities
AS-14 All entities
AS-15 All entities
AS-16 All entities
AS-17 Level-1
AS-18 Level-1&2/all companies
AS-19 All entities
AS-20 Level-1, All companies
AS-21 see #
AS-22 All entities
AS-23 see #
AS-24 Level-1&2/ All companies
AS-25 Level-1 and any entity which is required to prepare interim financial report
AS-26 All entities
AS-27 see #
AS-28 All entities
AS-29 All entities
AS-30 Level-1
AS-31 Level-1
AS-32 Level-1

#….As-21,23 & 27 are mandatory to those entities which require to prepare & present consolidated financial statements.

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5 thoughts on “Applicability of Accounting standards – Complete Guide

  1. Rohit kumar sharma says:

    Is as 15 mandatory for all non corporate assesses ?? As I have read there is some relaxation given to level 2 and 3 enterprises whether this is applicable now or this is an old provision .please suggest me.

  2. Albin says:

    Dear sir,

    The given link shows that the level 2 entities are the one which turnover exceeds 1 crore and does not exceed 50 crore. Sir you have mentioned in this article it is 10 crore instead of 1 crore, is this including other income?, please clarify.

  3. SHIVAM.WADHWA says:

    please tell.one thing…. it is written that banks are covered in Level 1 entities on which all.AS applies….. But in RTP of May 17 a ques is given on pg no.19, in ats answer it is written that AS 13 does not applies on.it, rather it have to.comply with RBI norms….. why it is contradictory…. is im having a conceptual error…..? PLEASE HELP

  4. Ritesh Mittal says:

    Dear sir
    As you have mentioned in level II entities – turnover between 10 crore to 50 crore but on ICAI website it is 40 lakhs to 50 crore. Can you please clarify.

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