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CA Intermediate · Advanced Accounting · Applicability of Accounting Standards

Orion Foods Ltd is a Level II company. For a Level II company, which treatment of AS 17 Segment Reporting is correct under the ICAI framework?

AS 17 is not applicable to Level II companies. Segment reporting is required only for Level I entities, so Orion Foods Ltd, as a Level II company, is fully exempt from AS 17 and need not give even primary segment disclosures under it.

  1. AAS 17 applies in full with no exemption
  2. BAS 17 is not applicable to Level II companiesCorrect
  3. CAS 17 applies only to the primary segment
  4. DAS 17 applies only if the company has borrowings above Rs 50 crore

Explanation

AS 17 Segment Reporting applies to Level I companies only. Level II and Level III entities are exempt from AS 17 altogether, so no partial application exists. The borrowing threshold in the last option is the Level I criterion, but Orion is already stated to be Level II.

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