Accounting Standards Rules G.S.R. 432(E)

The Companies (Accounting Standards) Rules, 2021

The Accounting Standards for companies that do not apply Indian Accounting Standards, the definition of a Small and Medium Sized Company, and the exemptions available to such companies. Supersedes the 2006 Rules.

5 Rules

G.S.R. 432(E) Notification

133 Section

14 Aug 2026 Text as on

G.S.R. 432(E) Enacted 23 June 2021 Enforced 01 April 2021 Ministry of Corporate Affairs As amended upto 14 August 2026

Made under

The Companies Act, 2013 Chapter IX

s. 133 s. 469

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Opening text

Preamble

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India Ministry of Corporate Affairs

NOTIFICATION

New Delhi the 23rdJune, 2021

G.S.R………. (E).—In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013)and in supersession of the Companies (Accounting Standards) Rules, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 739(E),dated the 07th December, 2006 [and amended from time to time vide numbers G.S.R. No. 212(E), dated the 27th March, 2008, G.S.R. 225(E), dated the 31st March, 2009, G.S.R. 378(E), dated the 11th May, 2011, G.S.R. 913(E), dated the 29th December, 2011, G.S.R. 914(E), dated the 29th December, 2011, G.S.R. 364(E), dated the 30th March, 2016 and G.S.R. 569(E) dated the 18th June, 2018], except as respects things done or omitted to be done before such supersession, the Central Government, after consultation with the National Financial Reporting Authority constituted under section 132 of the said Act, hereby makes the following rules, namely:—

Chapter I

Accounting Standards

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R. 1 Short title and commencement

Open rule

1. Short title and commencement.- (1) These rules may be called the Companies (Accounting Standards) Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

R. 2 Definitions

Open rule

2.Definitions.-

(1) In these rules, unless the context otherwise requires,-

(a) “Accounting Standards” means the standards of accounting or any addendum thereto as specified in rule 3;

(b) “Act” means the Companies Act, 2013 (18 of 2013);

(c)“Annexure” in relation to these rules means the Annexure containing the Accounting Standards (AS) appended to these rules;

(d)“Enterprise” means a ‘company’ as defined in clause(20) of section 2 of the Act;

(e) “Small and Medium Sized Company” (SMC) means, a company-

(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;

(iv) which does not have borrowings (including public deposits) in excess of fifty crore rupees at any time during the immediately preceding accounting year; and

(v) which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

Explanation.-For the purposes of this clause, a company shall qualify as a Small and Medium Sized Company, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period.

(2) Words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.