ICAI Announcement
The Accounting Standards Board of The Institute of Chartered Accountants of India (ICAI) has issued an important announcement regarding compliance relaxation for the 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.
Relaxation for 2024-25
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. This decision provides flexibility to entities and practitioners during this transition period.
Important Clarification
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.
This means that while the guidance notes are now voluntary for the 2024-25 period, all other accounting standards and frameworks remain mandatory as before.
How We Can Help
At Yalamuri's & Co., Company Secretaries, we specialize in corporate compliance and can assist you with:
- Understanding the implications of this relaxation for your entity
- Determining whether voluntary application of the guidance notes is beneficial for your situation
- Ensuring continued compliance with all applicable Accounting Standards
- Preparing and reviewing financial statements in accordance with relevant frameworks
Need professional guidance? Contact us today!
