Applicability of as to non-corporate entities

[Bijay Shrestha]

Is it legally mandatory to follow AS for Non-corporate entities like Proprietors, firms, etc. (Other than Companies) like companies??

is there any legal consequences or punishments if they do not use AS issued by ICAI?

because in many cases they have their own set of accountings and policies.

Please kindly advise.

Read more at: http://www.caclubindia.com/forum/applicability-of-as-to-non-corporate-entities-374184.asp

[Ganeshan Kalyani]

In my view accounting standards are applicable to both corporate and non-corporate as well.

AI Summary

Accounting Standards applicability affirmed for non-corporate entities, stressing expected compliance despite informal accounting policies.
The exchange records a query whether Accounting Standards issued by the Institute of Chartered Accountants are legally mandatory for non-corporate entities; a respondent states that Accounting Standards apply to both corporate and non-corporate entities, without citing statutory authority or specifying enforcement consequences.