As per the revised scheme effective from accounting periods commencing on or after April 1, 2024, classify non-company entities for the purpose of…

The revised scheme for applicability of Accounting Standards to Non-company entities shall come into effect in respect of accounting periods commencing on or after April 1, 2024, which is as under: For the purpose of applicability of Accounting Standards, Non-company entities are classified into two categories, viz., Micro, Small and Medium Sized Entities (MSMEs) and Large entities.Micro, Small and Medium Sized Entity (MSME) means, a non-company entity: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;which is not a bank, financial institution or an insurance company;whose turnover (excluding other income) does not exceed two hundred and fifty crore rupees in the immediately preceding accounting year;which does not have borrowings in excess of fifty crore rupees at any time during the immediately preceding accounting year; andwhich is not a holding or subsidiary of an entity which is not a micro, small and medium-sized entity. Explanation: For the purposes of this clause, a non-company entity shall qualify as a Micro, Small and Medium Sized entity, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period. Large entity is a non-company entity that is not an MSME. The terms 'Small and Medium Enterprise' and 'SME' used in Accounting Standards shall be read as 'Micro, Small and Medium size entity' and 'MSME', respectively. Further, the terms Level II, Level III and Level IV entities used in Accounting Standards shall be read as 'Micro, Small and Medium Sized Entity' and Level I entity shall be read as a 'Large' entity.