FINALLY, NEW FINANCIAL STATEMENT FORMATS EFFECTIVE TODAY

Starting April 1, 2025, the ICAI Guidance Note on Financial Statements for Non-Corporate Entities is officially in force.

Old-style financial statements are no longer acceptable. Non-compliance is not an option.

 

IMMEDIATE ACTION REQUIRED:

Follow the prescribed format strictly

Present comparative figures for the previous year

Align accounting policies with the new guidance

Provide detailed Notes to Accounts

Classify assets/liabilities into current and non-current

Disclose basis of preparation and key judgments/estimates

STRICTLY AVOID:

Preparing T-format or any old format financials that you would have been preparing historically

Reporting for current year only (comparatives are mandatory)

Using outdated or generic accounting policy templates

Skipping or summarizing required disclosures

Informal or tax-oriented presentation styles

Mixing tax and accounting figures without proper reconciliation

KEY MANDATORY CHANGES:

Uniform format for Balance Sheet and Statement of Profit & Loss for ALL NON CORPORATE ENTITIES

Clear, mandatory disclosure of significant accounting policies

Application of Accounting Standards for Non-Corporate Entities

Proper asset/liability classification

Detailed disclosures for related party transactions (AS 18)

Disclosure of contingent liabilities (AS 29)

This is NOT a recommendation. It’s an ICAI mandate.

FAILURE TO COMPLY MAY RESULT IN:

– Rejection by tax authorities, banks, and other institutions

– Disciplinary action by ICAI

– Damage to your professional credibility

– Loss of client trust and questions on your competence

Read the Guidance Note today. Change your approach-before it’s too late.