Archive · 1 Aug 2025
ICAI Council Approves New Financial Reporting Format for Businesses
Imagine companies showing how they make and spend money.
The Institute of Chartered Accountants of India (ICAI) is changing how they show this.
They approved a new format, like a new way of organizing information.
Companies will show money from their main business, investments, and financing separately.
It will be clearer where the money comes from and where it goes.
It's also meant to make it easier to understand for investors.
It will be similar to changes happening around the world.
The new format will probably start in April 2027.
ICAI approved a new financial reporting format, Ind AS 118, for businesses.
The new format aims to provide greater clarity on company performance.
The format mandates a three-part breakdown: operating, investing, and financing.
Information currently outside financial statements will now be included.
Implementation is likely by April 2027, aligning with IFRS 18 globally.
- Who
- The Institute of Chartered Accountants of India (ICAI).
- What
- ICAI approved a new financial reporting format, Ind AS 118.
- When
- Likely implementation is by April 2027.
- Where
- India.
- Why
- To provide clarity on company performance and align with global standards.
Businesses
Investors and Regulators
Impact on reporting processes
Businesses
Requires precise reporting and may involve adjustment of existing financial reporting processes.
Investors and Regulators
Improved transparency, auditability, and comparability of financial statements.
- Organization
- Institute of Chartered Accountants of India (ICAI)
- Standard
- Ind AS 118
- Focus
- Financial reporting format
- Implementation
- Likely April 2027
- Global Alignment
- IFRS 18
- Key Change
- Three-part breakdown