ICAI Announces Phased Rollout of Guidance Notes for LLPs

The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) has issued an important announcement regarding the applicability of the Guidance Notes on Financial Statements of Non-Corporate Entities and Limited Liability Partnerships (LLPs). These Guidance Notes, were released in August 2023, with an intention to bring greater consistency, transparency, and structure to the preparation and presentation of financial statements for entities outside the corporate framework.

At its 451st meeting held on 30th–31st March 2026, the ICAI Council approved a phased implementation approach to facilitate a smooth transition for stakeholders.

Under this approach, the applicability will be as follows:

Phase I – Applicable for accounting periods beginning on or after April 1, 2025, for non-corporate entities and LLPs having a turnover exceeding ₹5 crores.

Phase II – Applicable for accounting periods beginning on or after April 1, 2026, and will extend to all non-corporate entities and LLPs, irrespective of turnover.

This staggered implementation is intended to provide larger entities, who are likely to have more complex financial reporting requirements, an earlier transition window, while allowing smaller entities additional time to align their systems and processes.

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