Professional Update by CA Gupta Nitin Ghaziabad
Respected Members
Greetings of the day!
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 said Guidance Note(s) were made effective for financial statements covering periods beginning on or after April 1, 2024. But on 19th September 2025 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.
So It should be effective from 1st April 2026 for the annual reporting period 2025-26. But the Council has done it in the phased manner as below :
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:
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Applicable from
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Criteria
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Phase I:
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Accounting periods beginning on or after April 1, 2025
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Entities whose turnover exceeds Rs. 5 crores
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Phase II
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Accounting periods beginning on or after April 1, 2026.
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All entities
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Source: https://icai.org/post/asb-announ-310326
With Warm Regards
CA. Nitin Gupta
B.Com, FCA, DISA, DIRM, DITL
Chairman CICASA CIRC (2026-27)
Regional Council Member CIRC (2022-2029)
Secretary CIRC of ICAI (2024-2025)
Vice Chairman CIRC of ICAI (2023-2024)
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Email: nitinguptafca@gmail.com