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EDs/consultation papers – India and international

Updates from ICAI

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Currently, there are no common international accounting standards for Non-Profit Organisations (NPOs). The International Financial Reporting for Non-Profit Organisations (IFR4NPO) project aims to address this issue by strengthening NPO governance and financial management through the development of internationally applicable financial reporting guidance for NPOs.

Consequently, first Exposure Draft (ED) of the International Non-Profit Accounting Guidance (INPAG) was issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) and Humentum in November 2022. The INPAG ED1 was focused on the overarching framework for NPO financial reporting. In this regard, recently, the ED of INPAG Part-2 has been issued. It covers some of the key accounting transactions that are relevant for NPO financial reporting, which include:

  • Expenses on grants and donations
  • Revenue
  • Inventories, and
  • Foreign currency translation.

With a view to invite comments from the members, ICAI has hosted the INPAG ED2 on its website. It is open for comments up to 10 January 2024.

To access the text of INPAG ED2, please click here

Currently, Accounting Standards (AS) issued by the ICAI for applicability of AS to non-company entities are applicable to Limited Liability Partnerships (LLPs) for the preparation and presentation of their financial statements.

Section 34A of the LLP Act, 2008 prescribes that the Central Government may, in consultation with the National Financial Reporting Authority (NFRA), prescribe the standards of accounting as recommended by the ICAI for a class or classes of LLPs. Recently, ICAI issued the Exposure Draft (ED) on AS for LLPs.

The ED is open for comments up to 27 November 2023.

To access the text of the ED, please click here

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