Date: September 19, 2025
Issued by: Accounting Standards Board, The Institute of Chartered Accountants of India (ICAI)
The Institute of Chartered Accountants of India (ICAI) has announced a significant update regarding the Guidance Note on Financial Statements of Non-Corporate Entities and the Guidance Note on Financial Statements of Limited Liability Partnerships (LLPs).
Background
In August 2023, ICAI introduced two important pronouncements:
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Guidance Note on Financial Statements of Non-Corporate Entities
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Guidance Note on Financial Statements of Limited Liability Partnerships
These were initially made effective for financial statements starting on or after April 1, 2024.
Latest Update for FY 2024-25
To address practical challenges and in the larger interest of members, the Council of ICAI has provided relaxation for the annual reporting period 2024-25.
👉 Compliance with these guidance notes is now voluntary for FY 2024-25.
👉 Entities may adopt voluntarily but are not mandated to follow them for this year.
Clarification
This relaxation does not impact the applicability of Accounting Standards or the Framework for Preparation and Presentation of Financial Statements. Non-corporate entities and LLPs must continue to comply with relevant Accounting Standards and ICAI pronouncements.
🔔 Key Takeaway:
For FY 2024-25, following the ICAI Guidance Notes on non-corporate entities and LLPs is optional, though early adoption is encouraged for better reporting, transparency, and compliance.