Small and Medium Sized Company criteria set accounting standard applicability with turnover and borrowing thresholds. Rule 2 defines terms for the Companies (Accounting Standards) Rules, 2021: Accounting Standards means standards specified in rule 3; "Act" means the ... Summary
Small and Medium Sized Company criteria set accounting standard applicability with turnover and borrowing thresholds.
Rule 2 defines terms for the Companies (Accounting Standards) Rules, 2021: Accounting Standards means standards specified in rule 3; "Act" means the Companies Act, 2013; "Annexure" is the Appendix containing the Accounting Standards; and "Enterprise" means a company as per the Act. It sets objective criteria for a Small and Medium Sized Company: unlisted securities, not a bank/financial institution/insurer, turnover Rs. 250 crore in the preceding year, borrowings Rs. 50 crore at any time in the preceding year, and not a holding/subsidiary of a non-SMC; qualification is assessed at the end of the accounting period.
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