 | Accounting Standard (AS) 28, Impairment of Assets, issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004. The Standard is mandatory in nature from different dates for different levels of enterprises as below: (i) To Level I enterprises- from accounting periods commencing on or after 1.4.2004. (ii) To Level II enterprises- from accounting periods commencing on or after 1.4.2006. (iii) To Level III enterprises- from accounting periods commencing on or after 1.4.2008. The criteria for different levels are given in Annexure I. |
| | Considering the feedback received from various interest-groups and the concerns expressed at various forums, it is felt that relaxation should be given to Level II and Level III enterprises (referred to as ‘Small and Medium Sized Enterprises’ (SMEs)), from the measurement principles contained in AS 28, Impairment of Assets. |
| | AS 28 defines, inter alia, the following terms: An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset’s net selling price and its value in use. Net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. |
| | The relaxations for SMEs in respect of AS 28 have been decided as below: (i) Considering that detailed cash flow projections of SMEs are often not readily available, SMEs are allowed to measure the ‘value in use’ on the basis of reasonable estimate thereof instead of computing the value in use by present value technique. Therefore, the definition of the term ‘value in use’ in the context of the SMEs would read as follows: “Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life, or a reasonable estimate thereof”. (ii) The above change in the definition of ‘value in use’ implies that instead of using the present value technique, a reasonable estimate of the ‘value in use’ can be made. Consequently, if an SME chooses to measure the ‘value in use’ by not using the present value technique, the relevant provisions of AS 28, such as discount rate etc., would not be applicable to such an SME. Further, such an SME need not disclose the information required by paragraph 121(g) of the Standard. Subject to this, the other provisions of AS 28 would be applicable to SMEs. |
| | An enterprise, which, pursuant to the above provisions, does not use the present value technique for measuring value in use, should disclose, the fact that it has measured its ‘value in use’ on the basis of the reasonable estimate thereof and the manner in which the estimate has been arrived at including assumptions that govern the estimate. |
| | Where an enterprise has been covered in Level I and subsequently, ceases to be so covered, the enterprise will not qualify for relaxation/exemption from the applicability of this Standard, until the enterprise ceases to be covered in Level I for two consecutive years. |
| | Where an enterprise has previously qualified for the above relaxations (being not covered in Level 1) but no longer qualifies for relaxation in the current accounting period, this Standard becomes applicable from the current period without the above relaxations. However, the corresponding previous period figures in respect of the relevant disclosures need not be provided. |
| The above provisions are applicable in respect of the accounting periods commencing on or after 1-4-2006 (for Level II enterprises) and 1-4-2008 (for Level III enterprises). However, if an enterprise being a Level II enterprise starts applying AS 28 from accounting periods beginning on or after 1-4-2006, it will continue to apply this Standard even if it ceases to be covered in Level II and becomes a Level III enterprise. | |
Annexure I | |
| Criteria for classification of enterprises | |
| | Level I Enterprises |
Enterprises which fall in any one or more of the following categories, at any time during the accounting period, are classified as Level I enterprises: (i) Enterprises whose equity or debt securities are listed whether in India or outside India. (ii) Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors’ resolution in this regard. (iii) Banks including co-operative banks. (iv) Financial institutions. (v) Enterprises carrying on insurance business. (vi) All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crore. Turnover does not include ‘other income’. (vii) All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 10 crore at any time during the accounting period. (viii) Holding and subsidiary enterprises of any one of the above at any time during the accounting period. | |
| | Level II Enterprises |
Enterprises which are not Level I enterprises but fall in any one or more of the following categories are classified as Level II enterprises: (i) All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 40 lakhs but does not exceed Rs. 50 crore. Turnover does not include ‘other income’. (ii) All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 1 crore but not in excess of Rs. 10 crore at any time during the accounting period. (iii) Holding and subsidiary enterprises of any one of the above at any time during the accounting period. | |
| Level III Enterprises |
| Enterprises which are not covered under Level I and Level II are considered as Level III enterprises. | |
FAQs
ICAI - The Institute of Chartered Accountants of India? ›
Chartered Accountant CPA Reciprocity
But still, the US currently does not have a similar agreement with India. Therefore, an Indian CA wishing to work as a professional certified public accountant in the US must apply for the credential.
Chartered Accountant CPA Reciprocity
But still, the US currently does not have a similar agreement with India. Therefore, an Indian CA wishing to work as a professional certified public accountant in the US must apply for the credential.
Yes, a CPA in the USA is equivalent to an Indian CA. Both certifications are highly respected and recognized worldwide. Miles Education helps you determine whether pursuing the US CPA designation is a worthy endeavor for Indian CAs.
What is the salary of ICAI in India? ›As a fresh CA, the average salary ranges from ₹4.5 lakh to ₹6 lakh per annum. According to the Institute of Chartered Accountants of India (ICAI), the average CA salary offered through campus placements has risen from ₹8 lakh to ₹11.50 lakh per annum in 2024.
What is the cost of CA course in India? ›| Total Fees for CA Course for 5 years | ||
|---|---|---|
| Particulars | Indian Students | |
| CA Intermediate | ₹34,200 | ₹1,14,200 |
| CA Final | ₹39,800 | ₹1,29,800 |
| Total | ₹85,300 | ₹3,00,300 |
Yes, individuals who have completed the Chartered Accountancy (CA) qualification in India can potentially work in the United States.
What is the highest salary of CA in the USA? ›Usually, the competitive salaries for various CA salaries range between 50,000 USD and 250,000 USD. International students who are interested in pursuing a career as a chartered accountant in the USA can pursue a master's in accounting in the USA or a similar CA degree that can offer significant growth potential.
Can US CPA of India work in USA? ›Can Indian CPA work in the USA? Indian CPA candidates need to apply for US credentials in order to work in any part of the USA, as each state tends to have a different accounting body.
What is the salary of a CPA in India? ›The average salary for a CPA in India is around INR 7 lakh per annum.
What is the average salary of a chartered accountant in India? ›Chartered Accountant salary in India ranges between ₹ 2.0 Lakhs to ₹ 17.0 Lakhs with an average annual salary of ₹ 11.1 Lakhs. Salary estimates are based on 12.5k latest salaries received from Chartered Accountants. 0 - 9 years exp. 0 - 9 years exp.
Which Big 4 pays the most to a CA in India? ›
| Name of the Company | Salary to CA |
|---|---|
| Deloitte | ₹15-36 lakhs |
| HUL | ₹16-30 lakhs |
| KPMG | ₹ 13-32 lakhs |
| Aditya Birla Sun Life | ₹13-35 lakhs |
Chartered Accountant Salary In India FAQs
The average salary of a CA in India varies based on experience and location, but it's generally around ₹6-9 lakhs per annum for freshers and can go up to ₹20-25 lakhs per annum for experienced professionals.
The duration to become a CA varies but typically takes around 4.5 to 5 years. It involves completing the CA Foundation course (4-6 months), CA Intermediate course (8-9 months), a minimum of 2.5 to 3 years of Articleship training, and the CA Final course (10-12 months).
Is CA still in demand in India? ›“For every one trillion dollar growth in the economy, there is an expected requirement of 1 lakh chartered accountants. By the time India reaches its 100 years of independence, there will be an expected requirement of 30 lakh CAs,” said Agarwal. Currently, there are four lakh CA members registered under ICAI.
Is CA in India worth it? ›In my personal opinion doing CA is of totally worth. 1. CA is highest authority for accounts and audit. You will be a part of organization who is at most superior level who designs the work of how to record transactions and to check that transaction.
Is CA SA Recognised in USA? ›The CPA designation is much more well-known and recognized amongst the business community in the USA, regardless of business size, industry, state, etc. The CA (SA) designation is recognized by many multi-national & global businesses, but even then, many prefer to see a CPA designation as well.
Can a CA practice in the US? ›Makes you a qualified CA of the US. On successful completion of this course from India, you will be able to practice Chartered Accountancy in Montana, Washington D.C., Pennsylvania, Guam, and Alaska. However, once you are working in the US, you can attain the US CPA license to other cities as well.
Can Indian CPA work in the USA? ›For Indian professionals in the USA, getting work permits can be tough. But with the STEM-certified MAcc program, Indian accountants now get a three-year work permit (instead of the usual one year), giving them a solid start in American public accounting firms.
What is the equivalent of a chartered accountant in the US? ›Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. It is generally equivalent to the title of chartered accountant in other English-speaking countries. In the United States, the CPA is a license to provide accounting services to the public.