For the benefit of Members and other stakeholders, the ICAI has published a revised checklist on the disclosure requirements prescribed by accounting standards (AS) 1 to 29 (October 2022 edition).
In order to make the preparation of financial statements that can reflect a “true and fair” view of the entity’s financial position and performance easier to reference and comply with, the ICAI has published a checklist that compiles all the disclosure and presentation requirements of various Accounting Standards. Additionally, insofar as they pertain to topics covered by Accounting Standards, this checklist incorporates the disclosure requirements of various announcements and guidance notes on accounting issued by the ICAI from time to time.
In February 2020, ICAI published an earlier version of this checklist. Following that, there were a few significant amendments, such as the ICAI changing the criteria for the applicability of AS to non-company entities, the MCA notifying the Companies (Accounting Standards) Rules 2021, and so on. Non-company entities are now classified into four categories, namely, Level I, Level II, Level III, and Level IV (Large, Medium, Small, and Micro Sized Enterprises), as opposed to three previously. Non-SMCs and Level I entities are currently required to fully comply with all Accounting Standards. SMCs and Level IV, Level III, and Level II non-company entities have received certain exemptions/relaxations (Micro, Small and Medium sized non-company entities).
The ICAI has updated the checklist on disclosure requirements of accounting standards in this revised edition to reflect the additional exemptions/ relaxations granted to non-company Micro, Small and Medium Sized Entities (MSME) based on the earlier Announcement relating to ‘Criteria for classification of Noncompany Entities for Applicability of Accounting Standards’. Furthermore, this checklist has been updated in accordance with the changes in Accounting Standards to comply with the Company (Accounting Standards) Rules 2021. This checklist has also been updated to reflect changes in certain Guidance Notes on accounting issues since the last publication.
ICAI has advised that this checklist should be read in conjunction with the applicable accounting standard and not as their substitute. Further, the disclosure requirements imposed by other legal requirements, such as Schedule III of the Companies Act of 2013, are not covered by this disclosure check list.
Checklist on Disclosure Requirements of ICAI’s Accounting Standards (Revised October 2022 Edition)
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