The Institute of Chartered Accountants of India (ICAI) has clarified the phased applicability of its Guidance Notes on Financial Statements for Non-Corporate Entities and Limited Liability Partnerships (LLPs), originally issued in August 2023.
As per the decision taken at the 451st Council meeting held on March 30-31, 2026, the implementation will be carried out in two phases. Phase I applies from April 1, 2025, to entities with turnover exceeding Rs 5 crore, while Phase II extends applicability to all entities from April 1, 2026.
Official copy of the notification is as follows
Announcement regarding applicability of 'Guidance Note on Financial Statements of Non-Corporate Entities' and 'Guidance Note on Financial Statements of Limited Liability Partnerships' for annual reporting periods 2025-26 onwards
The Institute of Chartered Accountants of India (ICAI), in August 2023, issued the Guidance Note on Financial Statements of Non-Corporate Entities and the Guidance Note on Financial Statements of Limited Liability Partnerships.
The Council at its 451st meeting held on 30th-31st March, 2026, has decided that these Guidance Note(s) shall be applicable to Non-Corporate Entities and Limited Liability Partnerships in a phased manner, as under:
| Applicable from | Criteria | |
| Phase I: | Accounting periods beginning on or after April 1, 2025. | Entities whose turnover exceeds Rs. 5 crores |
| Phase II | Accounting periods beginning on or after April 1, 2026. | All entities |
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