Advanced Accounting - May Rtp 2026 RTP

1. For the purpose of applicability of Accounting Standards, Noncompany entities are classified into two categories, viz., Micro, Small and Medium Sized Entities (MSMEs) and Large entities.

Sized Entity (MSME) means, a noncompany entity: (i) | whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India; (ii) which is not a bank, financial institution or an insurance company; (iii) whose turnover (excluding other income) does not exceed two hundred and fifty crore rupees in the immediately preceding accounting year; REVISION TESTES 5 INTERMEDIATE EXAMINATION (iv) which does not have borrowings in…

4. Certain exemptions/relaxations have been provided to Micro, Small and Medium sized Entity (MSMEs). Applicability of Accounting Standards and exemptions/relaxations to such entities are given in Annexure 1.

5. This Announcement supersedes the earlier Announcement of the ICAI on ‘Criteria for classification of Non-company entities for applicability of Accounting Standards issued in March 20211. 1 The said announcement was hosted on ICAI website on March 31, 2021 and published in ‘The Chartered Accountant’, May 2021 and it superseded the earlier announcement of the ICAI on ‘Harmonisation of various differences between the Accounting Standards issued by the ICAI and the Accounting Standards notified by the Central Government’ issued in…

6. This Announcement is not relevant for Non-company entities which may be required to follow Indian Accounting Standards (Ind AS) or Accounting Standards (AS) as per relevant regulatory requirements applicable to such entities.

7. The changes arising from this Announcement will be incorporated in the Accounting Standards while publishing the updated Compendium of Accounting Standards. Additional requirements (1) An MSME which avails the exemptions or relaxations given to it shall disclose (by way of a note to its financial statements) the fact that it is an MSME and has complied with the Accounting Standards insofar as they are applicable to an MSME. (2) Where an MSME had qualified for any exemption or relaxation…

A Company purchased a land from its own funds and started construction on two towers on the land. The Company for the construction borrowed funds of % 60 lakhs each for both the towers. The Company is required to pay interest of % 60,000 annually for each loan. During the first year the Company allotted the vacant area for parking purposes which fetched revenue of % 15,000 in year 1 only. Tower 1 got ready at the end of year…