The Institute of Chartered Accountants of India (ICAI) has released an exposure draft of Accounting Standards for Limited Liability Partnerships (LLPs).
ICAI has invited comments from Stakeholders/LLPs till November 27, 2023. This is an important opportunity to share insights on impact of proposed accounting standards, to help formulate effective accounting standards for LLPs!
Key Highlights of Proposed Accounting Standards for LLPs
i) It recommends LLPs follow the accounting standards for companies, with some exemptions.
ii) LLPs will be classified into 4 levels based on size – large, medium, small and micro.
iii) Large LLPs will need to comply fully with all the standards.
iv) Smaller LLPs will get exemptions and relaxed requirements for certain standards like taxes, leases, employee benefits, impairments etc.
v) LLPs following cash basis will apply standards to the extent applicable.
vi) Standards on consolidation, interim reporting will apply only if LLP prepares such statements.
vii) LLPs will need to disclose the standards followed and any exemptions availed.
Download the exposure draft from ICAI website. Submit comments online or email to commentsasb@icai.in.