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Government notifies accounting standards for small and medium companies

24 Jun 2021 Evaluate

In a big relief, the government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous.

Besides, the definition of Small and Medium Sized Companies (SMCs) under the standards has been revised. The Companies (Accounting Standards) Rules, 2021 have been notified by the corporate affairs ministry under the Companies Act, 2013.

Under the revised SMC definition, the turnover limit has been increased from Rs 50 crore to not exceeding Rs 250 crore and with enhanced borrowing limits. This is in addition to the requirements that such entities should be unlisted companies, which are not banks, financial institutions or insurance companies.

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