14 November 2008
Most of the SMEs get classified into Level III enterprises who are excluded them from the rigours of certain accounting standards — such as AS 3 (on cash flows), AS 17 (on segment reporting), AS 18 (on related party disclosures), AS 24 (on discontinuing operations) and ASs 21, 23 and 27 — that were mainly applicable to top level enterprises. These enterprises were also exempted from making disclosures under AS 20 (on earnings per share) and AS 29 (on provisions and contingencies). A general rule of the standard-setters has been to defer the applicability of new standards for SMEs to give them time to get used to them.
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