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Applicability of Accounting standards – Complete Guide

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 – Complete Guide

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-1All entities
AS-2All entities
AS-3Level-1
AS-4All entities
AS-5All entities
AS-6All entities
AS-7All entities
AS-8Not in existence
AS-9All entities
AS-10All entities
AS-11All entities
AS-12All entities
AS-13All entities
AS-14All entities
AS-15All entities
AS-16All entities
AS-17Level-1
AS-18Level-1&2/all companies
AS-19All entities
AS-20Level-1, All companies
AS-21see #
AS-22All entities
AS-23see #
AS-24Level-1&2/ All companies
AS-25Level-1 and any entity which is required to prepare interim financial report
AS-26All entities
AS-27see #
AS-28All entities
AS-29All entities
AS-30Level-1
AS-31Level-1
AS-32Level-1

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

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3 comments

  1. 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

  2. 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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