Financial Statements of Non-Corporate Entities By CA Kamal Garg

This book provides a comprehensive guide on the preparation, presentation, and disclosure requirements for the financial statements of non-corporate entities such as sole proprietorships, partnerships, and small businesses, based on Indian accounting and auditing standards. It is especially tailored for chartered accountancy students, accounting professionals, and auditors who deal with non-corporate clients.

Key features include:

✅ Detailed explanation of Schedule III (where applicable) and its adaptation for non-corporate entities

✅ Practical formats and specimen financial statements for various types of non-corporate entities

✅ Guidance on accounting policies, notes to accounts, and disclosure requirements

✅ Coverage of recent amendments, standards, and regulatory updates relevant to non-corporate entities

✅ Helpful checklists and illustrative examples to aid in proper compliance

✅ Insights into auditor’s reporting responsibilities for non-corporate entities

This book is widely used by CA Final and CA Intermediate students for exam preparation as well as by practicing professionals for reference in real-world engagements.

Table of Contents

1️⃣ Introduction

• Meaning and scope of non-corporate entities
• Types: sole proprietorship, partnership firms, LLPs, AOPs, trusts, societies, etc.
• Applicability of accounting standards to non-corporate entities

2️⃣ Framework for Preparation and Presentation

• Accounting concepts and principles applicable
• ICAI’s Guidelines and announcements for non-corporate entities
• Legal framework: overview of relevant acts (e.g., Partnership Act, LLP Act, Income Tax Act)

3️⃣ General Instructions for Preparation of Financial Statements

• Balance sheet format
• Profit and loss account format
• Cash flow statements (where applicable)
• Notes to accounts and significant accounting policies

4️⃣ Detailed Presentation and Disclosure Requirements

• Capital accounts, partner’s drawings, interest on capital
• Loans and advances, related party disclosures
• Fixed assets, depreciation, impairment
• Provisions, contingencies, and commitments
• Revenue recognition, inventories, and expense classification

5️⃣ Illustrative Financial Statements

• Specimen balance sheet and P&L for:
  • Sole proprietorships
  • Partnership firms
  • LLPs
  • Trusts and societies
  • Small/medium-sized entities (SMEs)

6️⃣ Accounting Standards for Non-Corporate Entities

• Applicability of AS for Level I, II, III entities
• Detailed discussion of exemptions and relaxations

7️⃣ Auditor’s Report and Audit Considerations

• Formats and contents of audit reports for non-corporate entities
• Key audit matters, emphasis of matter, and other reporting responsibilities
• Sample audit reports

8️⃣ Recent Amendments and Regulatory Updates

• Changes in accounting standards
• Income tax-related disclosure requirements
• MCA/ICAI circulars or notifications impacting non-corporate entities

9️⃣ Practical Checklists and Guidance

• Disclosure checklists
• Review checklists for preparation and audit
• Common mistakes and how to avoid them

10️⃣ Appendices

• Specimen notes to accounts
• Model resolutions (where applicable)
• Relevant extracts from laws, regulations, and standards