ICAI Gives Relaxation in Compliance With Guidance Notes on Financial Statements for 2024-25

The Institute of Chartered Accountants of India (ICAI) had earlier announced Guidance notes for preparing financial statements for Non-Corporate Entities and Limited Liability Partnerships (LLPs). These guidelines were set to take effect from April 1, 2024.

However, the ICAI has decided to give relaxation to follow the Guidance Note on Financial Statements of Non-Corporate Entities and LLPs for the annual reporting period 2024-25, to address the challenges and make compliance easier for the members. Therefore, the businesses can voluntarily follow the new guidelines if they want to.

The ICAI has clearly mentioned that these guidance notes do not change the applicability of Accounting Standards and the Framework that these entities have to follow while preparing their financial statements. These must continue to be followed.