ICAI Issues Revised Technical Guide on KPI Disclosure 2025

The Institute of Chartered Accountants of India (ICAI), through its Auditing and Assurance Standards Board (AASB), has issued the revised Technical Guide on Disclosure and Reporting of Key Performance Indicators (KPIs) in Offer Documents (2025). This revised edition has been released to align with the Industry Standards on KPI Disclosures formulated by the Industry Standards Forum (ISF), a joint initiative of ASSOCHAM, CII, and FICCI, under the guidance of the Securities and Exchange Board of India (SEBI). The ISF KPI Standards were notified by SEBI on February 28, 2025, and have come into effect from April 1, 2025.

The revised Technical Guide aims to ensure uniformity and standardization in identifying, disclosing, and reporting KPIs in Initial Public Offer (IPO) documents. It provides comprehensive guidance on the roles and responsibilities of issuer companies, merchant bankers, auditors, and other professionals involved in KPI reporting. The guide explains the classification of KPIs into GAAP financial measures, non-GAAP financial measures, and operational measures, and elaborates on procedures for data compilation, audit committee approval, certification, and continuous disclosure post-listing.

It also emphasizes the need for robust internal controls and disclosure controls over the preparation and presentation of KPIs to ensure their accuracy and consistency. The revised guide includes detailed illustrative formats for auditor and practitioner reports on KPIs, a compliance checklist, and relevant SEBI notifications. The Technical Guide applies to issuer companies undertaking IPOs in India and to practitioners holding a valid peer review certificate issued by ICAI’s Peer Review Board. It is not applicable to offers made outside India under Rule 144A or Regulation S of the U.S. Securities Act.

This revised edition strengthens the framework for KPI disclosure and reporting in IPO offer documents, ensuring transparency, comparability, and regulatory consistency, thereby enhancing investor confidence and the reliability of information presented in public offerings.

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