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classification for Non-Company Entities

The Institute of Chartered Accountants of India (ICAI) recently released a major update, revising the classification criteria for Non-Company Entities (NCEs) under the Accounting Standards framework. This revision simplifies the existing structure by consolidating the previous four levels (Level I to IV) into two categories: Micro, Small, and Medium-Sized Entities (MSMEs) and Large Entities. With this streamlined classification, the update brings clear compliance guidelines—requiring Large Entities to fully adhere to all Accounting Standards, while providing MSMEs with certain exemptions and relaxations. This updated framework, effective for accounting periods beginning on or after April 1, 2024, offers greater clarity and ease of compliance for non-company entities.

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The post ICAI Announces Revised Classification Criteria of Non-Company Entities for the Applicability of Accounting Standards appeared first on Taxmann Blog.

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