ICAI Relaxes Compliance with Guidance Notes on Financial Statements for Non-Corporate Entities and LLPs for FY 2024-25

The Institute of Chartered Accountants of India ( ICAI ) has announced a relaxation in compliance requirements relating to the recently issued Guidance Note on Financial Statements of Non-Corporate Entities and Guidance Note on Financial Statements of Limited Liability Partnerships (LLPs) for the annual reporting period 2024-25.

These Guidance Notes, which were originally made effective for financial statements covering periods beginning on or after April 1, 2024, will now be applicable on a voluntary basis for the specified period.

“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” said ICAI in its notification.

Accordingly, non-corporate entities and LLPs may choose to adopt these Guidance Notes voluntarily for FY 2024-25, while mandatory compliance will not be enforced for this period.

Also, ICAI has clarified that this relaxation does not alter the applicability of existing Accounting Standards and the Framework for the Preparation and Presentation of Financial Statements, which continue to remain in force.

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