Accounting Standard Applicability? - Professionals - Accounting - TIK Share

Accounting Standard Applicability?


Rahul Rai

2014-02-03

Accounting Standards issued by Institute of Chartered Accountants of India are the base of Financial Reportings.

I just want know under which circumstances these accounting standards are applicable?

Which business need to maintain their books and present financail statements as per Accounting statements?

Are these Accounting Standards (AS) applicable to all statutory audits, including Tax Audits, Co-operative societies?

Vedanta Deshika

2014-02-03

Accounting Standards are applicable to all commercial and business undertakings. For Companies, NACAS prescribes the accounting standards. However, few exemptions are provided for SME/Non SME and Level I , Level II , Level III companies wrt Disclosures etc

Reply

CA Pulkit Sharma

2014-02-03

Accounting Standards (AS) are issued by ICAI. ICAI is the major accounting institute of India.

Each law mention the accounting treatment. For example Electricity and Banking industry have different accounting requirements.

Similar each law specifies the applicability of different Accounting Treatment. If law requires applicability of AS, than it will be applicable.

Companies Act requires that Financial statements should be made as per Accounting Standards, and so accounting standards are applicable.

For different laws governing the audits, you must check whether they require statements as per accounting standards.

Reply