The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) has announced a phased rollout of two key guidance notes for enhancing financial reporting standards across India’s non-corporate sector.

These pertain to the preparation of financial statements by non-corporate entities and limitedliability partnerships (LLPs).

The announcement, dated March 31, 2026, follows the 451st meeting of the ICAI Council held on March 30–31, 2026. It formalizes the applicability of the Guidance Note on Financial Statements of Non-Corporate Entities and the Guidance Note on Financial Statements of Limited Liability Partnerships, both originally issued in August 2023.

According to the ASB, the implementation will proceed in two distinct phases:

1. Phase I: Effective for accounting periods beginning on or after April 1, 2025, the guidance notes will apply to entities whose turnover exceeds ₹5 crore.
2. Phase II: From April 1, 2026 onwards, the guidance notes will extend to all entities, regardless of turnover.

This phased approach shows ICAI's commitment to balancing regulatory rigor with practical transition timelines. By targeting larger entities first, the ASB aims to ensure that those with greater financial complexity adopt the standards early, while smaller entities are given additional time to prepare.

They provide a structured framework aligned with the principles of accrual accounting and disclosure norms, thereby improving stakeholder confidence and regulatory oversight. The guidance notes are designed to bring consistency, transparency, and comparability to financial statements prepared by non-corporate entities and LLPs—segments that have historically operated with varied reporting practices.

With this announcement, ICAI reinforces its role as a standard-setter committed to evolving India’s financial reporting area.

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