Meeting ID: 892 7702 0098

Passcode: 769518

About the program:

Compliance with Accounting Standards for Non-Corporate Entities & Non-profit Organisations is the need of the hour, given that many of these entities are quite large and affect different stakeholders. Also, given their commercial or public interest status, it is important that all these entities follow uniform code of accounting standards including disclosure requirements.

Towards this, ICAI has come out with Guidance Note on Financial Statements of Non-Corporate Entities as well as a separate Guidance Note for Non-Profit Organisations which have been issued by Accounting Standards Board in August 2023. These need to be compulsorily followed from the Financial Year beginning 1st April 2024 i.e. from FY 2024-25.

Professional accountants should always be aware of and consider Guidance Notes applicable to the relevant engagement. A professional accountant who does not consider and apply the guidance included in a relevant Guidance Note should take reasonable and adequate care in performing the alternate procedures adopted by him to deal with the objectives and basic principles set out in the Guidance Note.

Professional Accountants also need to follow the Income Computation and Disclosure Standards for all entities as per Section 145(2) of Income Tax Act,1961.

Hence, one should also consider the Accounting Policies as per Accounting Standards vis-a-vis ICDS especially in cases where the audit is being conducted purely for tax audit / tax return filing purpose, which is mainly the scope in Non-Corporate Entities.
Also Understanding of “Level" of Non-Corporate Entities / Non-Profit Organisations is essential as different levels have different compliance requirements.

In such situations, a professional accountant should also document the rationale in performing the alternate procedures. Similarly, while discharging his attest function, a member should examine whether the recommendations in a Guidance Note relating to an accounting matter have been followed or not. If the same have not been followed, the member should consider whether keeping in view the circumstances of the case, a disclosure in his report is necessary in accordance with Engagement Standards.
The above aspect was emphasized by the ICAI announcement dt. 19th August 2023 by way of a “Clarification Regarding Authority Attached to Documents Issued by the Institute”. Clients and stakeholders need to be sensitivised and also educated of the same to ensure compliance in the coming financial years.

Attending this Study Circle Meeting, will ensure preparers of financial statements as well as auditors to understand the compliance requirements, understand the formats, disclosures required as also documentation requirements in audit as part of auditing standards as well as to prepare for future Peer Review resulting in Confidence and Quality Enhancement.

Speaker profile:

CA. Sashank Srivatsan S, BCom, LLB(Hons.), FCA is a Chartered Accountant in Practice for the last 6 years who has exposure in various Taxation and Audit and Assurance Engagement. He is a co-opted member in Accounting Standards Board of ICAI for the years 2023-24 and 2024-25. He was also a co-opted member in the Expert Advisory Committee of ICAI. He was part of the Task force of ICAI representing the Ministry of Finance and Central Board of Direct Taxes and Infosys for resolving Income Tax E-filing Portal 2.0 Errors : he was the representative from Southern India Regional Council of ICAI.

He has also assisted various authors in publication of Books in relation to Accounting and Taxation including Padhuka’s Publication for the last 2 years. He is also a speaker for various Continuous Professional Education (CPE) Programmes conducted by ICAI on Accounting Standards, Indian Accounting Standards and Income Tax. His areas of specialisation are taxation, accounting standards, bank audits & financial reporting.