The Companies(Accounting Standards) Rules, 2021

Government of India
Ministry of Corporate Affairs
NOTIFICATION
New Delhi the 23rd June, 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:—
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.
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