Third Schedule – Classification of companies and accounting framework
Classifies companies by size and public interest, and fixes the accounting framework each must use.
Who it applies to
Every company preparing financial statements
Rates and limits
| Item | Rate / rule |
|---|---|
| Public interest company (listed) | IFRS; disclosures per Fourth Schedule |
| Public interest company (non-listed public sector, utility, fiduciary) | IFRS; Fifth Schedule |
| Large sized: paid-up Rs 200M+, or turnover Rs 1bn+, or 750+ employees | IFRS; Fifth Schedule |
| Medium sized: private with paid-up above Rs 10M up to Rs 200M, or turnover Rs 100M–1bn, or 250–750 employees | Revised AFRS for SSEs; Fifth Schedule |
| Small sized: private with paid-up up to Rs 10M, turnover up to Rs 100M and up to 250 employees | Revised AFRS for SSEs; Fifth Schedule |
| Not-for-profit (s.42/s.45) | Accounting Standards for NPOs (IFRS too if revenue is Rs 200M+) |
How it works in practice
Classification is based on the previous year's audited accounts and changes only after two consecutive years outside the criteria. Employees mean the monthly average for the year.