The Institute of Chartered Accountants of India, through its Accounting Standards Board, has announced the phased applicability of the Guidance Note on Financial Statements of Non-Corporate Entities and Limited Liability Partnerships for annual reporting periods starting 2025–26. As per the decision taken at its 451st Council meeting held on 30–31 March 2026, the implementation will occur in two phases. Phase I applies to accounting periods beginning on or after 1 April 2025 and covers entities with turnover exceeding ₹5 crore. Phase II extends applicability to all such entities for accounting periods beginning on or after 1 April 2026. This phased approach ensures a smooth transition, allowing larger entities to adopt the framework first while providing smaller entities additional time to prepare. The announcement aims to enhance consistency, transparency, and comparability in financial reporting across non-corporate entities and LLPs in India.
The Institute of Chartered Accountants of India
Accounting Standards Board
The Institute of Chartered Accountants of India
March 31, 2026
Announcement
Announcement regarding applicability of ‘Guidance Note on Financial Statements of Non-Corporate Entities’ and ‘Guidance Note on Financial Statements of Limited Liability Partnerships’ for annual reporting periods 2025-26 onwards
The Institute of Chartered Accountants of India (ICAI), in August 2023, issued the Guidance Note on Financial Statements of Non-Corporate Entities and the Guidance Note on Financial Statements of Limited Liability Partnerships.
The Council at its 451st meeting held on 30th-31st March, 2026, has decided that these Guidance Note(s) shall be applicable to Non-Corporate Entities and Limited Liability Partnerships in a phased manner, as under:
| Applicable from | Criteria | |
| Phase I: | Accounting periods beginning on or after April 1, 2025. | Entities whose turnover exceeds Rs. 5 crores |
| Phase II | Accounting periods beginning on or after April 1, 2026. | All entities |
