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

The Institute of Chartered Accountants of India (ICAI) has announced a relaxation for non-corporate entities and Limited Liability Partnerships (LLPs) regarding compliance with the recently issued guidance notes on financial statements. In August 2023, ICAI 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 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. It is clarified that this announcement will not affect 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.