ICAI Provides Relaxation in Compliance of Guidance Notes for Annual Reporting Period 2024-25

The Institute of Chartered Accountants of India (ICAI), through its Accounting Standards Board, has announced a relaxation for non-corporate entities and Limited Liability Partnerships (LLPs) regarding compliance with recently issued guidance notes on financial statements.

In August 2023, ICAI had released the Guidance Note on Financial Statements of Non-Corporate Entities and the Guidance Note on Financial Statements of Limited Liability Partnerships, effective for financial statements covering periods beginning on or after April 1, 2024.

However, acknowledging practical challenges and in the larger interest of stakeholders, the ICAI Council has now decided that compliance with these guidance notes will be voluntary for the annual reporting period 2024-25. Entities may choose to adopt the notes, but mandatory implementation will not apply for this year.

Official copy of the notification is as follows

Announcement providing relaxation in compliance with the 'Guidance Note on Financial Statements of Non-Corporate entities' and 'Guidance Note on Financial Statements of Limited Liability Partnerships' for annual reporting period 2024-25

The Institute of Chartered Accountants of India (ICAI), in August 2023 issued 'Guidance Note on Financial Statements of Non-Corporate Entities' and 'Guidance Note on Financial Statements of Limited Liability Partnerships'. The said Guidance Note(s) were made effective for financial statements covering periods beginning on or after April 1, 2024.

Considering the facts and circumstances and in the larger interest of the members, the Council of the ICAI has decided to provide relaxation in the compliance of the 'Guidance Note on Financial Statements of Non-Corporate Entities' and 'Guidance Note on Financial Statements of Limited Liability Partnerships' for annual reporting period 2024-25. The said Guidance Note(s) can be applied voluntarily for annual reporting period 2024-25.

It may be clarified that this announcement will not have any impact on the applicability of Accounting Standards and the Framework for the Preparation and Presentation of Financial Statements to these entities, and the same would continue to apply as per other relevant pronouncements of the ICAI.