Accounting Standard (AS) 24,
Discontinuing Operations, was issued in February 2002 as
a recommendatory Accounting Standard. The Council, at its
224th meeting, held on March 8-10, 2002, decided that AS
24 would be mandatory in nature in respect of accounting
periods commencing on or after 1-4-2004 for the following:
-
Enterprises whose equity
or debt securities are listed on a recognised stock
exchange in India, and enterprises that are in the process
of issuing equity or debt securities that will be listed
on a recognised stock exchange in India as evidenced
by the board of directors’ resolution in this regard.
-
All other commercial, industrial
and business reporting enterprises, whose turnover for
the accounting period exceeds Rs. 50 crores.
In respect of all other enterprises,
the Accounting Standard would be mandatory in nature in
respect of accounting periods commencing on or after 1-4-2005.
Earlier application of the accounting standard would be
encouraged.
