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Financial Accounting · Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

List and Applicability of Indian Accounting Standards (AS)

Updated 10 October 2026 · Fact-checked

Companies not following Ind AS must follow the notified Accounting Standards, AS 1 to AS 29 (AS 6, 8 and 30 onwards are not in the list). Small and Medium Sized Companies (SMCs) get exemptions or relaxations in AS 15, 17, 19, 20, 28 and 29. Non-company entities follow Levels I to IV.

Understand List and Applicability of Indian Accounting Standards (AS)

Accounting Standards (AS) are the written rules that tell a business how to recognise, measure and disclose items in its financial statements. They are issued by ICAI and notified for companies under the Companies (Accounting Standards) Rules, 2021. They apply to companies that do not follow Ind AS.

The notified list in the Compendium has these standards: AS 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29. Notice what is missing. AS 6 (Depreciation Accounting) and AS 8 (Research and Development) are not in the list, and there is nothing after AS 29. So a search for 'AS 1 to AS 32' will mislead you. Learn the list as it stands.

Not every company needs the full set. The rules split companies into Small and Medium Sized Companies (SMCs) and Non-SMCs. A company that does not meet the SMC definition is a Non-SMC. Non-SMCs apply every standard in full. SMCs get relief where the cost of compliance is high.

An SMC must meet all of these conditions at the end of the relevant accounting period: (i) its equity or debt securities are not listed or in the process of listing, in India or outside; (ii) it is not a bank, financial institution or insurance company; (iii) its turnover, excluding other income, does not exceed ₹250 crore in the immediately preceding accounting year; (iv) it has no borrowings, including public deposits, above ₹50 crore at any time in that year; (v) it is not a holding or subsidiary of a company that is not an SMC.

Non-company entities such as firms, trusts and societies are grouped into Levels I to IV. Level I entities must comply in full. Levels II, III and IV get progressively more relief. For example, AS 3 (Cash Flow Statements) is not applicable to Levels II, III and IV, and AS 14 is not applicable to Level IV. Consolidated statements (AS 21, 23, 27) and interim reporting (AS 25) are needed from a non-company entity only if it is required to, or chooses to, present them.

Key rules to remember

SMC test
SMC = unlisted AND not bank/FI/insurer AND turnover ≤ ₹250 crore AND borrowings ≤ ₹50 crore AND not holding/subsidiary of a non-SMC
All five conditions must hold at the end of the relevant accounting period. Failing any one makes the company a Non-SMC. Turnover excludes other income. The limits are 'does not exceed'.
Standard not applicable to SMCs
AS 17 Segment Reporting
The only standard not applicable to SMCs in its entirety.
AS 15 relaxations for SMCs
Non-vesting short-term accumulating compensated absences; discounting beyond 12 months; defined benefit plans; other long-term benefits
For defined benefit plans and other long-term benefits the SMC must still provide the actuarial liability using the Projected Unit Credit Method, with the discount rate from government bond yields at the balance sheet date.
Other SMC relaxations
AS 19: some disclosures; AS 20: diluted EPS exempt; AS 28: value in use by reasonable estimate; AS 29: paragraphs 66 and 67 disclosures not applicable
In AS 28, an SMC that does not use the present value technique also need not give the disclosure in paragraph 121(g).
Non-company entities
Level I: all AS in full; Levels II to IV: relief by level
AS 3 is not applicable to Levels II, III and IV. AS 10 and AS 11 apply to Levels III and IV with disclosure exemption. AS 14 is not applicable to Level IV. AS 15 is applicable with exemptions to Levels II, III and IV.

How to solve List and Applicability of Indian Accounting Standards (AS) questions

Applicability questions are solved by classifying the entity first and then checking the standard against that class.

  1. 1Identify the entity type: company following Ind AS, company not following Ind AS, or non-company entity.
  2. 2For a company under AS, test the SMC conditions one by one. Write each condition and tick or cross it with the given figures.
  3. 3Watch the limits: turnover up to ₹250 crore and borrowings up to ₹50 crore still qualify. Exclude other income from turnover.
  4. 4Check group links. A subsidiary or holding company of a Non-SMC is itself a Non-SMC.
  5. 5Name the standard asked about and state whether it applies in full, with relaxation, or not at all.
  6. 6If relaxation applies, state exactly what is relaxed, using the standard's paragraph numbers where you are sure.
  7. 7For a non-company entity, state its level and apply the Level I to IV position.
  8. 8Close with a one-line conclusion that answers the question asked.

Quickest way: Five-gate SMC check

When to use it: Use for MCQs and short cases that ask whether a company is an SMC or which standards it may skip.

  1. Listed or listing? If yes, Non-SMC. Stop.
  2. Bank, financial institution or insurer? If yes, Non-SMC. Stop.
  3. Turnover (without other income) above ₹250 crore? If yes, Non-SMC.
  4. Borrowings above ₹50 crore at any time in the year? If yes, Non-SMC.
  5. Holding or subsidiary of a Non-SMC? If yes, Non-SMC. Otherwise it is an SMC.
  6. Then recall: AS 17 fully exempt; relaxations in AS 15, 19, 20, 28, 29.

Common mistakes in List and Applicability of Indian Accounting Standards (AS)

  • Believing the AS list runs from AS 1 to AS 32, or has no gaps.

    Students mix it with the Ind AS numbering or old notes.

    Fix: Remember the list is AS 1 to AS 29 without AS 6 and AS 8.

  • Treating a company with turnover of exactly ₹250 crore as a Non-SMC.

    The word 'below' is assumed instead of 'does not exceed'.

    Fix: Turnover up to and including ₹250 crore passes. Same for borrowings of ₹50 crore.

  • Including other income in turnover when testing SMC status.

    Students use total income from the statement of profit and loss.

    Fix: The definition says turnover excluding other income. Remove it first.

  • Calling a small unlisted subsidiary of a large listed company an SMC.

    Students check only the company's own size.

    Fix: Check condition (v). A subsidiary or holding company of a non-SMC is a Non-SMC.

  • Saying SMCs are exempt from AS 15, 19, 20, 28 and 29 entirely.

    Relaxation is confused with exemption.

    Fix: Only AS 17 is exempt in its entirety. The others are relaxed in specific paragraphs. An SMC must still measure defined benefit liability actuarially.

  • Saying AS 3 applies to all non-company entities.

    Students assume cash flow statements are universal.

    Fix: AS 3 is not applicable to Levels II, III and IV non-company entities. Level I must comply in full.

Worked examples

Example 1

Sundaram Textiles Pvt Ltd is unlisted and not a bank, financial institution or insurer. Last year its turnover was ₹240 crore, other income was ₹15 crore, and its highest borrowing during the year was ₹48 crore. It has no holding or subsidiary company. Is it an SMC? State whether it must prepare segment information under AS 17.

Show the solution
  1. Condition (i): unlisted, so satisfied.
  2. Condition (ii): not a bank, financial institution or insurer, so satisfied.
  3. Condition (iii): turnover excluding other income is ₹240 crore. The ₹15 crore of other income is left out. ₹240 crore does not exceed ₹250 crore, so satisfied.
  4. Condition (iv): highest borrowing ₹48 crore does not exceed ₹50 crore, so satisfied.
  5. Condition (v): no holding or subsidiary relationship, so satisfied.
  6. All five conditions are met, so the company is an SMC.
  7. AS 17 Segment Reporting is not applicable to SMCs in its entirety.

Answer: Sundaram Textiles Pvt Ltd is an SMC and need not apply AS 17.

Example 2

Bharat Components Ltd is unlisted with turnover of ₹120 crore and borrowings never above ₹20 crore. It is a subsidiary of Kalyani Industries Ltd, which is listed. Is Bharat Components an SMC? Can it skip diluted EPS disclosure under AS 20?

Show the solution
  1. Check the first four conditions: unlisted, not a bank or insurer, turnover ₹120 crore within ₹250 crore, borrowings ₹20 crore within ₹50 crore. All are met.
  2. Check condition (v): Bharat Components is a subsidiary of Kalyani Industries Ltd. Kalyani is listed, so it fails condition (i) and is not an SMC.
  3. A subsidiary of a company that is not an SMC fails condition (v).
  4. So Bharat Components is a Non-SMC.
  5. Non-SMCs apply all standards in full. The diluted EPS exemption under AS 20 is available only to SMCs.

Answer: Bharat Components Ltd is a Non-SMC because its parent is not an SMC. It must disclose diluted EPS and comply with all standards in full.

Exam tips

  • In MCQs, run the five-gate check in order. A single failed gate settles the answer.
  • Learn the AS list with its gaps: AS 6 and AS 8 are not in it, and it ends at AS 29.
  • For written answers, show each SMC condition against the given figure. Step marks come from the test, not just the conclusion.
  • Be exact on relaxations: AS 17 fully exempt, diluted EPS exempt in AS 20, and the AS 15 actuarial method still required for SMCs.
  • Revise the non-company levels with AS 3 and AS 14 as the usual test points.

Practice questions from Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

List and Applicability of Indian Accounting Standards (AS) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

List and Applicability of Indian Accounting Standards (AS): frequently asked questions

How many Accounting Standards are there for companies not following Ind AS?

The notified list runs from AS 1 to AS 29, but AS 6 and AS 8 do not appear in it. So there are 27 standards in the list. There is no AS 30, 31 or 32 in the notified list.

Is a company with turnover of ₹250 crore an SMC?

It can be, if the other conditions are met. The test is that turnover, excluding other income, does not exceed ₹250 crore in the immediately preceding accounting year. The same logic applies to borrowings of ₹50 crore.

Which standard is not applicable to SMCs at all?

AS 17 Segment Reporting. For AS 15, 19, 20, 28 and 29 SMCs only get relief from certain requirements, not full exemption.

Do non-company entities need to prepare cash flow statements?

Level I entities comply with all standards in full, so AS 3 applies to them. AS 3 is not applicable to Level II, III and IV entities.