Following up on the recent ICAI classification criteria, let’s dive into the specific exemptions and relaxations available to MSMEs:

🚫 Standards Not Applicable to MSMEs in entirety:
• AS 3 (Cash Flow Statements)
• AS 17 (Segment Reporting)
• AS 20 (Earnings per Share)
• AS 24 (Discontinuing Operations)

💡 Special Exemptions for Smaller MSMEs in entirety:
For entities with:
• Turnover ≤ ₹50 crore
• Borrowings ≤ ₹10 crore
• Not a holding/subsidiary of another MSME

Additional exemptions from:
• AS 18 (Related Party Disclosures)
• AS 28 (Impairment of Assets)

🔄 Key Relaxations in Specific Standards: (will be explained separately)
1. Property, Plant & Equipment (AS 10)
2. Foreign Exchange Rates (AS 11)
3. Employee Benefits (AS 15)
4. Leases (AS 19)
5. Taxes on Income (AS 22)
6. Intangible Assets (AS 26)

⚡ Pro Tips:
• Document your exemption status in financial statements
• Review eligibility criteria annually
• Maintain consistency in applying exemptions
• Consider business growth plans before opting for exemptions

🎯 Strategic Considerations:
“While exemptions reduce compliance burden, consider your stakeholder needs and future growth plans before opting out of certain disclosures.”

💡 Remember: These relaxations aim to ease compliance without compromising financial reporting quality!

🤝 Need guidance on implementing these exemptions? Let’s connect and discuss!