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Once a company ceases to be an SMC, when does it lose SMC exemptions?
AImmediately
BAfter 3 years
CFrom the year in which it ceases to be SMC
DNever
Answer & Solution
Correct answer: C. From the year in which it ceases to be SMC
1. Step 1: SMC exemptions are lost from the year an entity ceases to qualify.
2. Step 2: The entity must apply full ASs going forward.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 3 "Applicability of Accounting Standards"_