Vindha was partner in VRV & Associates, partnership firm, which was into logistics business. The revenue of the firm had crossed ₹ 40 crores, but no proper accounting and reporting was done. Records were maintained o

Accounting Standards contain wholesome principles of accounting and can be viewed as standardised language of business to communicate high quality information in financial statements based on principles of transparency, consistency and also comparability and reliability. Accounting standards are a set of principles which entities follow while preparing the financial statements providing a standardised way of describing the entity's financial position and financial performance. Applicability of Accounting Standards: Accounting Standards apply in respect of any entity engaged in commercial, industrial or business activities. It is not a necessity that the entity must be a corporate entity. Exemption from complying Accounting Standards: Exclusion of an entity from the applicability of the Accounting Standards is permissible only if no part of the activity of such entity is commercial, industrial or business in nature. Applicability of AS if only a small portion of business is commercial, industrial or business in nature. Even if where a very small proportion of the activities of an entity were considered to be commercial, industrial or business in nature, the Accounting Standards would apply to all its activities including those, which are not commercial, industrial or business in nature. Hence relevant accounting standards will apply to VRV & Associates