Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

Accounting Standards Applicability

Accounting Standards Applicability 

For the purpose of compliance of the accounting Standards, the ICAI had earlier issued an announcement on ‘Criteria for Classification of Entities and Accounting Standards Applicability’. As per the announcement, entities were classified into three levels.

Level II entities and Level III entities as per the said announcement were considered to be Small and Medium Entities (SMEs).

However, when the accounting standards were notified by the Central Government in consultation with the National Advisory Committee on Accounting Standards, the Central Government also issued the ‘Criteria for Classification of Entities and Applicability of Accounting Standards’ for the companies.

Accounting Standards Applicability 

According to the ‘Criteria for Classification of Entities and Accounting Standards Applicability ’ as issued by the Government, there are two levels, namely, Small and Medium-sized Companies (SMCs) as defined in the Companies (Accounting Standards) Rules, 2006 and companies other than SMCs. Non-SMCs are required to comply with all the Accounting Standards in their entirety, while certain exemptions/ relaxations have been given to SMCs.

According to the ‘Criteria for Classification of Entities and Accounting Standards Applicability ’ as issued by the Government, Consequent to certain differences in the criteria for classification of the levels of entities as issued by the ICAI and as notified by the Central Government for companies, the Accounting Standard Board of the ICAI decided to revise its ‘‘Criteria for Classification of Entities and Applicability of Accounting Standards’ and make the same applicable only to non-corporate entities. Though the classification criteria and applicability of accounting standards has been largely aligned with the criteria prescribed for corporate entities, it was decided to continue with the three levels of entities for non-corporate entities vis-à-vis two levels prescribed forcorporate entities as per the government notification.

with regards,

Thank You

Accounting Standards Applicability 

cakartFor popular videos of CS CA CMA visit

Click here to download FREE CA CS CMA books

Accounting Standards Applicability 

Leave a comment

Your email address will not be published. Required fields are marked *