| The Council, at its 236th meeting, held on September 16-18, 2003, considered the matter relating to applicability of Accounting Standards to Small and Medium Sized Enterprises (SMEs). The Council decided the following scheme for applicability of accounting standards to SMEs. This scheme comes into effect in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 1. | For the purpose of applicability of Accounting Standards, enterprises are classified into three categories, viz., Level I, Level II and Level III. Level II and Level III enterprises are considered as SMEs. The criteria for different levels are given in Annexure I. | ||||||||
| 2. | Level I enterprises are required to comply fully with all the accounting standards. | ||||||||
| 3. | It has been decided that no relaxation should be given to Level II and Level III enterprises in respect of recognition and measurement principles. Relaxations are provided with regard to disclosure requirements. Accordingly, Level II and Level III enterprises are fully exempted from certain accounting standards which primarily lay down disclosure requirements. In respect of certain other accounting standards, which lay down recognition, measurement and disclosure requirements, relaxations from certain disclosure requirements are given. The exemptions/relaxations are decided to be provided by modifying the applicability portion of the relevant accounting standards. Modifications in the relevant existing accounting standards are given in Annexure II. | ||||||||
| 4. | Applicability of Accounting Standards and exemptions/relaxations for SMEs So far, the Institute has issued 29 accounting standards. The applicability of the accounting standards and exemptions/relaxations for SMEs are as follows: | ||||||||
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1The revised Standard (2002) comes into effect in respect of all contracts entered into during accounting periods commencing on or after 1-4-2003 and is mandatory is nature from that date. Accordingly, the pre-revised AS 7 (issued 1983) is not applicable in respect of such contracts. 2AS 8 is withdrawn from the date AS 26, Intangible Assets, becoming mandatory for the concerned enterprises. AS 26 is mandatory in respect of expenditure incurred on intangible items during accounting periods commencing on or after 1-4-2003 for the following:
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| (A) | Accounting Standards not applicable to Level II and Level III enterprises in their entirety:
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| (B) | Accounting Standards not applicable to Level II and Level III enterprises since the relevant Regulators require compliance with them only by certain Level I enterprises: 4
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| (C) | Accounting Standards in respect of which relaxations from certain disclosure requirements have been given to Level II and Level III enterprises:
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| (D) | Accounting Standard applicability of which is deferred for Level II and Level III enterprises: AS 28, Impairment of Assets
- For Level II Enterprises applicable from 1-4-2006 -For Level III Enterprises applicable from 1-4-2008 | ||||||||
| (E) | AS 25, Interim Financial Reporting, does not require any enterprise to present interim financial report. It is applicable only if an enterprise is required or elects to prepare and present an interim financial report. However, the recognition and measurement requirements contained in this Standard are applicable to interim financial results, e.g., quarterly financial results required by the SEBI. At present, in India, enterprises are not required to present interim financial report within the meaning of AS 25. Therefore, no enterprise in India is required to comply with the disclosure and presentation requirements of AS 25 unless it voluntarily presents interim financial report within the meaning of AS 25. The recognition and measurement principles contained in AS 25 are also applicable only to certain Level I enterprises since only these enterprises are required by the concerned regulators to present interim financial results. In view of the above, at present, AS 25 is not mandatorily applicable to Level II and Level III enterprises in any case. | ||||||||
| 5. | An enterprise which does not disclose certain information pursuant to the above exemptions/relaxations, should disclose the fact. | ||||||||
| 6. | Where an enterprise has previously qualified for any exemption/relaxation (being under Level II or Level III), but no longer qualifies for the relevant exemption/relaxation in the current accounting period, the relevant standards/requirements become applicable from the current period. However, the corresponding previous period figures need not be disclosed. | ||||||||
| 7. | Where an enterprise has been covered in Level I and subsequently, ceases to be so covered, the enterprise will not qualify for exemption/relaxation available to Level II enterprises, until the enterprise ceases to be covered in Level I for two consecutive years. Similar is the case in respect of an enterprise, which has been covered in Level I or Level II and subsequently, gets covered under Level III. | ||||||||
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| 1. | Modifications in AS 3, Cash Flow Statements | ||||||||
| The 'applicability' paragraphs of AS 3 stand modified as under: In the initial years, this accounting standard will be recommendatory in character. During this period, this standard is recommended for use by companies listed on a recognised stock exchange and other commercial, industrial and business enterprises in the public and private sectors. Accounting Standard (AS) 3, 'Cash Flow Statements' (revised 1997), issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-1997. This Standard supersedes Accounting Standard (AS) 3, 'Changes in Financial Position', issued in June 1981. This Standard is mandatory in nature in respect of accounting periods commencing on or after 1-4-20041 for the enterprises which fall in any one or more of the following categories, at any time during the accounting period:
Where an enterprise has been covered in any one or more of the above categories and subsequently, ceases to be so covered, the enterprise will not qualify for exemption from application of this Standard, until the enterprise ceases to be covered in any of the above categories for two consecutive years. Where an enterprise has previously qualified for exemption from application of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable from the current period. However, the corresponding previous period figures need not be disclosed. An enterprise, which, pursuant to the above provisions, does not present a cash flow statement, should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. Accordingly, the announcement issued by the Council titled as 'Accounting Standard (AS) 3, Cash Flow Statements Made Mandatory', published in the December 2000 issue of the Institute's Journal (page 65) stands withdrawn in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 2. | Modifications in AS 17, Segment Reporting | ||||||||
| The 'applicability' paragraph of AS 17 stands modified as under: (ii) All other commercial, industrial and business reporting enterprises, whose turnover for the accounting period exceeds Rs. 50 crores This Standard is mandatory in nature in respect of accounting periods commencing on or after 1-4-20041 for the enterprises which fall in any one or more of the following categories, at any time during the accounting period:
Where an enterprise has been covered in any one or more of the above categories and subsequently, ceases to be so covered, the enterprise will not qualify for exemption from application of this Standard, until the enterprise ceases to be covered in any of the above categories for two consecutive years. See Also Everything you need to know about Amilyar - Property ReportA Guide to Real Estate Taxes in the Philippines | Condo LivingCAO - Real Property Tax ExcemptionYour Guide to Real Property Tax or Amilyar in the PhilippinesWhere an enterprise has previously qualified for exemption from application of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable from the current period. However, the corresponding previous period figures need not be disclosed. An enterprise, which, pursuant to the above provisions, does not disclose segment information, should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 3. | Modifications in AS 18, Related Party Disclosures | ||||||||
| The 'applicability' paragraph of AS 18 stands modified as under: Accounting Standard (AS) 18, 'Related Party Disclosures', issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2001. This Standard is mandatory in nature in respect of accounting periods commencing on or after 1-4-20041 for the enterprises which fall in any one or more of the following categories, at any time during the accounting period:
Where an enterprise has been covered in any one or more of the above categories and subsequently, ceases to be so covered, the enterprise will not qualify for exemption from application of this Standard, until the enterprise ceases to be covered in any of the above categories for two consecutive years. Where an enterprise has previously qualified for exemption from application of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable from the current period. However, the corresponding previous period figures need not be disclosed. An enterprise, which, pursuant to the above provisions, does not make related party disclosures, should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. Accordingly, the announcement issued by the Council titled as 'Applicability of Accounting Standard (AS) 18, Related Party Disclosures', published in the April 2002 issue of the Institute's Journal (page 1242) stands withdrawn in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 4. | Modifications in AS 19, Leases | ||||||||
| The 'applicability' paragraph of AS 19 stands modified as under: In respect of accounting periods commencing on or after 1-4-20041, an enterprise which does not fall in any of the following categories need not disclose the information required by paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e), of this Standard:
Where an enterprise has been covered in any one or more of the above categories and subsequently, ceases to be so covered, the enterprise will not qualify for exemption from paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e), of this Standard, until the enterprise ceases to be covered in any of the above categories for two consecutive years. Where an enterprise has previously qualified for exemption from paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e), of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable, in its entirety, from the current period. However, the corresponding previous period figures in respect of above paragraphs need not be disclosed. An enterprise, which, pursuant to the above provisions, does not disclose the information required by paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e) should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 5. | Modifications in AS 20, Earnings Per Share | ||||||||
| The 'applicability' paragraph of AS 20 stands modified as under: "Accounting Standard (AS) 20, 'Earnings Per Share', issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2001 and is mandatory in nature, from that date, in respect of enterprises whose equity shares or potential equity shares are listed on a recognised stock exchange in India. An enterprise which has neither equity shares nor potential equity shares which are so listed but which discloses earnings per share, should calculate and disclose earnings per share in accordance with this Standard from the aforesaid date.
Where an enterprise (which has neither equity shares nor potential equity shares which are listed on a recognised stock exchange in India but which discloses earnings per share) has previously qualified for exemption from the disclosure of diluted earnings per share and paragraph 48 of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable, in its entirety, from the current period. However, the relevant corresponding previous period figures need not be disclosed. If an enterprise (which has neither equity shares nor potential equity shares which are listed on a recognised stock exchange in India but which discloses earnings per share), pursuant to the above provisions, does not disclose the diluted earnings per share and information required by paragraph 48, it should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 6. | Modifications in AS 24, Discontinuing Operations | ||||||||
| The 'applicability' paragraph of AS 24 stands modified as under: "Accounting Standard (AS) 24, 'Discontinuing Operations', issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004.
The enterprises which do not fall in any of the above categories are not required to apply this Standard. Where an enterprise has been covered in any one or more of the above categories and subsequently, ceases to be so covered, the enterprise will not qualify for exemption from application of this Standard, until the enterprise ceases to be covered in any of the above categories for two consecutive years. Where an enterprise has previously qualified for exemption from application of this Standard (being not covered by any of the above categories) but no longer qualifies for exemption in the current accounting period, this Standard becomes applicable from the current period. However, the corresponding previous period figures need not be disclosed. An enterprise, which, pursuant to the above provisions, does not present the information relating to the discontinuing operations, should disclose the fact. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. Accordingly, the announcement issued by the Council titled as 'Accounting Standard (AS) 24, Discontinuing Operations', published in the May 2002 issue of the Institute's Journal (page 1378) stands withdrawn in respect of accounting periods commencing on or after 1-4-2004. | |||||||||
| 7. | Modifications in AS 28, Impairment of Assets | ||||||||
| The 'applicability' paragraphs of AS 28 stand modified as under: "Accounting Standard (AS) 28, 'Impairment of Assets', issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004.
Earlier application of the Accounting Standard is encouraged. The following is the text of the Accounting Standard." The above modifications come into effect in respect of accounting periods commencing on or after 1-4-2004. Note: In all the above modifications, the footnote clarifying the implications of 'mandatory' status of an accounting standard, will continue to appear whenever the word 'mandatory' is used for the first time as it presently appears in the respective standards. | |||||||||
| 1It was originally decided to make AS 28 mandatory in respect of accounting periods commencing on or after 1-4-2004 for the following: (i) Enterprises whose equity or debt securities are listed on a recognised stock exchange in India, and enterprises that are in the process of issuing equity or debt securities that will be listed on a recognised stock exchange in India as evidenced by the board of directors' resolution in this regard. (ii) All other commercial, industrial and business reporting enterprises, whose turnover for the accounting period exceeds Rs. 50 crores. In respect of all other enterprises, it was originally decided to make AS 28 mandatory in respect of accounting periods commencing on or after 1-4-2005. 2ibid 3ibid | |||||||||
FAQs
Is ICAI module enough? ›
Is the Study Material issued by ICAI enough for CA Final exam? I am writing on my personal experience, ICAI study material is not only best but bestest material for all level of CA from Foundation to Final. It contains flow of explaining any topic. Bez each topic explaining with deep concepts.
What is the pass rate for Chartered Accountants in India? ›What is the success rate of the CA final? The ICAI CA Final result pass percentage is 11.91% for Group I, 31.43% for Group II, and 8.33% for both groups.
What is the passing marks for Institute of Chartered Accountants of India? ›To pass the CA Inter exam, candidates must achieve at least a 40% on each paper and 50% overall in each group (minimum 200 marks in each group). Candidates who will not be able to secure the minimum marks prescribed by the exam conducting body will not be eligible to claim the certificate.
How many people pass the CA exam every year in India? ›Results of Chartered Accountants Final Examination-Old CourseAttempts
| CA-Final Pass Percentage of Five Exams (New Course) | ||
|---|---|---|
| Year | Group 1 | Both Groups |
| 2020 Nov | 32542 | 19284 |
| 2019 Nov | 27861 | 15003 |
| May 2019 | 8894 | 11092 |
The Auditing is recognised as the most difficult subject in CA Inter. This subject is the most competitive one as individual cannot study this subject on its own. Subjects like Accounting & Corporate and other laws helps in getting the knowledge of the subject auditing. Although FM & SM also needs proper attention.
What is the average pack of CA? ›The average salary of a CA in India varies based on experience and location, but it's generally around ₹6-9 lakhs per annum for freshers and can go up to ₹20-25 lakhs per annum for experienced professionals.
Is Indian CA equal to US CPA? ›If you're still unsure about the answer to the earlier question 'Is US CPA In The USA Equivalent To An Indian CA', the answer is surely 'yes'. However, the choice between the two courses completely depends upon your learning preferences and where you wish to settle post completion of your course.
Which is the toughest exam in India chartered accountancy? ›UPSC Exam is the Toughest Exam in India.
CA or Chartered Accountant is another toughest exam in India as candidates need to clear all 4 rounds (Foundation, Intermediate, 3 Years Articleship, and CA Final) in the first attempt only.
Salary of CA in USA Based on Experience
Chartered accountants with less than two years of experience earn about 56,700 USD annually. A person with an experience level ranging from two to five years can earn 71,600 USD per year, i.e. 26% more than a person with experience of fewer than two years.
No seat system, no college in joining CA. No caste, creed, religion, race, region impediments to admission or passing. You join Distance learning in essence, under the Institute of Chartered Accountants of India, and anyone in India can join and study towards becoming a CA.
How many students are there in CA in India? ›
There are currently 8.5 lakh students pursuing the CA course across India. To keep up with technological advancements, the new president has also constituted a committee to implement artificial intelligence.
How many CA's are there in India? ›The institute has more than 3,90,000 members currently.
What is the full form of ICAI? ›The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country.
What is the full form of CA? ›Answer: The Chartered Accountant designation is conferred by the Institute of Chartered Accountants of India (ICAI) on successful completion of its examination program. CA full form is Chartered Accountant.
How many CA qualified in India? ›Currently, there are four lakh CA members registered under ICAI. The expectation, however, is ambitious considering the pass percentage in CA examination ranges from 10 per cent to 20 per cent. In November 2023, out of 32,907 students that appeared for the final level exam, only 3,009 cleared the exam.
How many people attempt CA in India? ›| CA Foundation Pass Percentage Dec 2023 | ||
|---|---|---|
| Particulars | No. of candidates appeared | No. of candidates passed |
| Male | 71966 | 21728 |
| Female | 65187 | 19404 |
| Total | 137153 | 41132 |
Feb 7, 2024
Rigorous and competitive at each level of the CA exam. Specific syllabus for each section; focuses on quantitative, logical, and verbal aptitude. Comprehensive coverage of accounting, auditing, taxation, finance, and other related subjects.
How hard is it to become a chartered accountant in India? ›It will take a minimum of 5 years to become a CA in India after the 12th class. However, graduated students will need 4.5 years to become a CA. The period of 6 months is saved through the direct entry route. The students must note that the CA course duration will be increased by 6 with every failed attempt.