The Institute of Chartered Accountants of India (ICAI) has issued a Guidance Note on Financial Statements for Non-Corporate Entities, effective from 1st April 2024. This initiative aims to standardize financial reporting, enhance transparency, and align non-corporate entities with global accounting practices. New format became applicable for financial statements prepared for FY 2024-25.
The format to be followed has been given in the Guidance Note issued by ICAI and the Accounting Standards etc to be followed by and applies to all non-corporate entities, except those governed by specific laws prescribing financial statement formats. This includes Sole Proprietorships, Partnership Firms, Hindu Undivided Families (HUFs), Trusts, Societies, and Associations of Persons (AOPs) or Body of Persons (BOIs) to some extent which are in detail specified in the ICAI guidence Note. However, it is stated in the Guidence Note that the entities governed by regulators mandating specific formats like Maharashtra Public Trusts Act or any other Act prevailing in any other state must follow those formats but can refer to ICAI’s guidance for disclosures.
Further, the Accounting Standards to be followed and the exemptions applicable to them are summarised in the presentation referenced as under:
