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Revised Format for Financial Statements by ICAI: Applicability, Formats, and Compliance Guide

Financial reporting in India is witnessing a progressive shift toward standardization, transparency, and global alignment. One of the key drivers of this change is the Institute of Chartered Accountants of India (ICAI), which has released a revised format for financial statements applicable to corporate and non-corporate entities from FY 2024–25. This blog explains everything you need to know, including:

What’s new in ICAI’s revised format
Detailed structure and downloadable formats
Applicability for different types of entities
Mandatory vs optional guidelines
Compliance and professional tips

May 26, 2025

📌 Why Did ICAI Revise the Format?

The primary reasons behind the revision are:

Alignment with global best practices (IFRS/Ind AS)
Greater financial transparency
Better stakeholder communication
Uniformity in disclosures, even for non-corporate entities

Whether you're a CA, finance manager, business owner, or accounting student, these changes affect how financial statements are now prepared and presented.

You can also check out the Accounts Ka Badshah course and the Master Blaster of Ind AS to build a strong grip on these and to become an expert of Ind AS financial statement.

🧾 Entities Covered Under the New ICAI Format

✅ Corporate Entities (Companies Act, 2013)

Private/Public Companies
Listed Entities
NBFCs

Governed by:

Schedule III – Division I: Companies using Accounting Standards (AS)
Schedule III – Division II: Companies using Ind AS
Schedule III – Division III: NBFCs using Ind AS

✅ Non-Corporate Entities (Effective FY 2024–25)

Proprietorships
Partnership Firms
LLPs
Societies and Trusts
NGOs/NPOs
Individual Professional

📅 Timeline & Applicability

Timeline	Milestone
June 2022	ICAI issued a Technical Guide for Non-Corporates
August 2023	Final Guidance Note issued for Non-Corporate Financial Statements
April 1, 2024	Effective date – applicable for FY 2024–25 statements

📂 Downloadable Financial Statement Formats (as per ICAI)

These formats are designed by ICAI and available in the Guidance Note.

🔍 Key Components of the Revised Format

🧾 1. Balance Sheet Format (Illustrative)


Particulars	Note No.	Current Year (₹)	Previous Year (₹)
Equity and Liabilities
Shareholders’ Funds		XXX	XXX
Non-Current Liabilities		XXX	XXX
Current Liabilities		XXX	XXX
Assets
Non-Current Assets		XXX	XXX
Current Assets		XXX	XXX

📈 2. Statement of Profit and Loss Format


Particulars	Note No.	Current Year (₹)	Previous Year (₹)
Revenue from Operations		XXX	XXX
Other Income		XXX	XXX
Total Revenue		XXX	XXX
Total Expenses		XXX	XXX
Profit Before Tax		XXX	XXX
Tax Expense		XXX	XXX
Profit After Tax		XXX	XXX
Earnings Per Share (if applicable)		XXX	XXX

💸 3. Cash Flow Statement (As per Ind AS 7 / AS-3)

Operating Activities
Investing Activities
Financing Activities

Mandatory for corporates; optional for non-corporates unless statutorily required.

📊 4. Statement of Changes in Equity (SOCE)

Applicable mainly for:

Partnerships
LLPs
Companies with share capital

Tracks:

Opening balances
Net income/loss
Withdrawals, drawings, or dividends

📝 5. Notes to Accounts and Disclosures

Summary of Accounting Policies

Related Party Disclosures

Aging of Receivables/Payables

Contingent Liabilities

CSR Expenditure

Crypto/Virtual Assets (if any)

Property Title Deeds

Shareholding Patterns (for corporates)

⚖️ Is It Mandatory to Follow ICAI's New Format?

🏢 For Companies (Corporate Entities):

✅ Mandatory under Companies Act and MCA notifications.

👤 For Non-Corporate Entities:

❌ Not mandatory. The ICAI clarified that the Guidance Note is recommendatory. However, it is highly advisable for:

Audited entities
Firms seeking bank loans or government grants
Mid-to-large professional practices
Entities with investor interest

✅ Compliance Requirements (Quick Checklist)

Requirement	Corporates	Non-Corporates
Balance Sheet & P&L	✅ Mandatory	✅ Recommended
Cash Flow Statement	✅ Yes	❌ Optional
SOCE	✅ Yes	✅ Recommended
Notes to Accounts	✅ Yes	✅ Recommended
Audit Trail in Software (from 2023)	✅ Yes	❌ Optional
Filing with MCA (AOC-4, XBRL)	✅ Yes	❌ No

🎯 Benefits of Following ICAI's Revised Format

✔️ Improved financial transparency

✔️ Better acceptability by banks, investors, and auditors

✔️ Professional presentation of accounts

✔️ Easier compliance with future regulations

✔️ Preparedness for audits, funding, and tax scrutiny

📋 Final Thoughts

The Revised Format for Financial Statements by ICAI marks a significant upgrade in India’s financial reporting landscape. While mandatory for corporates, non-corporate entities are encouraged to adopt the new structure for better financial clarity, governance, and stakeholder trust. With rising expectations for transparency and professionalism, this guidance helps bridge the gap between informal and formal reporting—and prepares businesses for a more structured future.

Reference Links:-

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How to Gain Practical Experience in IND AS Financial Statements

Vedika Beriwal
Aspiring Company Secretory | M.COM | Masters in Bharatanatyam | Sharing insights on professional growth and success in the CA CS journey.