Assurance Gazette – July 2024 Edition

Welcome to the July 2024 edition of the Assurance Gazette! This edition delves into ICAI guidance notes that provide in-depth analysis and practical insights into the preparation and presentation of financial statements for Limited Liability Partnerships (LLPs) and Non-Corporate Entities.  

As these business structures are gaining momentum in India, ensuring accurate and transparent financial reporting becomes critical for building trust and attracting investment. We hope this edition provides valuable insights and helps you navigate the complexities of financial reporting for LLPs and NonCorporate Entities. Your feedback and suggestions are always welcome as we strive to bring you relevant and useful information in every edition of the Assurance Gazette. 

Guidance Note on Limited Liability Partnerships and Non – Corporate Entities: 

ICAI has released Guidance Note on Financial Statements of Limited Liability Partnerships and Guidance Note on Financial Statements for Non-Corporate Entities (collectively known as “GNs”). GNs are effective for financial statements covering periods beginning on or after April 1, 2024. These guidance notes aim to enhance the quality, comparability, and comprehensiveness of financial reporting by standardizing formats and providing clear guidance on the applicability of accounting standards. It aims to streamline the presentation of financial information and make it easier for stakeholders to understand and compare financial performance across entities. The technical guide on Financial Statements of Non- Corporate entities and LLP stands superseded by these Guidance Notes.  

Further, ICAI has introduced excel file for illustrative formats for Financial Statements of LLPs and Non-Corporate Entities on its portal, aiming to streamline reporting processes and ensure accuracy in financial disclosures. These templates are designed to facilitate comprehensive and standardized reporting practices across these entities. 

Applicability of Accounting Standards: 

GNs specify the applicability of accounting standards to various entities, ensuring consistency and compliance with relevant regulations. GNs emphasize the importance of adhering to applicable accounting standards to maintain the integrity of financial reporting.  

The Non-Corporate Entities Guidance Note offers broader coverage with less specificity, applicable to a wide range of noncorporate entities like Sole-proprietorship firms, HUF, Partnership Firms, Association of Persons, Trust and others. The LLP Guidance Note provides detailed guidance specifically for Limited Liability Partnerships.