ICAI’s New Financial Statement Format for FY 2024–25: Mandatory or Optional?

ICAI has introduced a new financial statement format for non-corporate entities such as proprietorship firms, individual businesses, Limited Liability Partnerships (LLPs), partnership firms, societies, and others for FY 2024-25.

Now, non-corporates also need to prepare working notes, accounting notes, and detailed financial statements not only just P&L and balance sheet.

Applicability

As per ICAI’s guidance note, the new format is applicable from 1st April 2024, for statements prepared for FY 2024-25.

ICAI Guidance Note

June 2022ICAI released a Technical Guide on Financial Statements for Non-Corporate Entities to provide initial recommendations and formats.
August 2023The official Guidance Note on Financial Statements for Non-Corporate Entities was issued, specifying that it would take effect from 1st April 2024.
April 2024The Guidance Note became effective which means financial statements for the FY 2024-25 must follow this new format.

Is There Any Change in Accounting?

There is no change in the way accounting is done in software like Tally or Zoho.

Changes are only in how financial statements are prepared and presented.

New Detailed Format

Click Here To Download – Formats for Financial Statements of Non-Corporate Entities

Click Here To Download – Formats for Financial Statements of Limited Liability Partnerships

Click Here To Download – Formats for Financial Statements of NPOs

ICAI’s Clarification Whether – Mandatory or Optional?

ICAI clarified that the guidance note is recommendatory in nature, not mandatory.

Professionals may choose to follow it, but it is not compulsory.

Recommendation

For small clients, following the new format may not be feasible due to time and fee constraints.

For large or serious clients, following the ICAI format is highly recommended for better presentation and compliance.

How useful was this post?

Click on a star to rate it!

Scroll to Top