Accounting Standards are applicable to an Enterprise, which is a Corporate, Co-operative, or any other form type, but it must be engaged in Commercial, Industrial, or Business activities. Even it is applicable to the Non Profit Enterprises like Charitable, Religious Trusts, such activities carried by them.
So, an Enterprise must have engaged in any one of or all of the following activities in order to adhere to the Accounting Standards.
An Enterprise can be out of this purview, if no part of the activity is of Commercial, Industrial, or Business in nature. Accounting Standards however do not apply to Enterprises solely carrying on the activities, which do not of the above cited activities. For instance, collecting donations and giving them to the flood affected people.
If a very small portion of the activities of an enterprise is considered to be of above cited nature, then the Accounting Standards will be applicable to all its activities, which are not of such kind of nature.
And this is about the determination of an Enterprise that the Accounting Standards are applicable to.