Exposure Draft of Accounting Standards for Limited Liability
Partnerships (LLPs)
In India, there are three sets of Accounting Standards in place, i.e., Companies (AccountingStandards) Rules, 2021, and Companies (Indian Accounting Standards) Rules 2015prescribed by Central Governmentcompanies and Accounting Standards issued by ICAIfor entities other than companies. Presently, Accounting Standards issued by the ICAI andcriteria prescribed by the ICAIapplicability of Accounting Standards to non-companyentities are applicable to LLPs for the preparation and presentation of their financialstatements. The AS issued by the ICAI are almost aligned with the Accounting Standardsnotified under AS Rules 2021 with very few differences.
Section 34A of the Limited Liability Partnership Act, 2008, prescribes that the CentralGovernment may, in consultation with the National Financial Reporting Authorityconstituted under section 132 of the Companies Act, 2013, prescribe the standards ofaccounting as recommended by the Institute of Chartered Accountants of India constitutedunder section 3 of the Chartered Accountants Act, 1949, for a classclasses of limitedliability partnerships.