14 July 2008
AS 15 (Revised) is applicable on trusts.
Accounting Standards apply in respect of any enterprise… irrespective of whether it is profit oriented or it is established for charitable or religious purposes. Accounting Standards will not, however, apply to enterprises only carrying on the activities, which are not of commercial,industrial or business nature, (e.g., an activity of collecting donations and giving them to flood affected people). Exclusion of an enterprise from the applicability of the Accounting Standards would be permissible only if no part of the activity of such enterprise is commercial, industrial or business in nature. Even if a very small proportion of the activities, Standards would apply to all its activities including those which are not commercial, industrial or business in nature”.
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