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ICAI Delays Quality Standards Rollout Amidst Regulatory Clash
1 Apr
Summary
- ICAI postponed quality management standards to a future date.
- NFRA had opposed ICAI's notification of new standards.
- Guidance notes for non-corporate entities effective April 1, 2026.
The Institute of Chartered Accountants of India (ICAI) has announced a deferral of its planned implementation of new quality management standards for accounting firms. These standards, which were set to replace existing ones from April 1, will now be put on hold until further notice.
This postponement follows a disagreement with the National Financial Reporting Authority (NFRA). The NFRA had contested the ICAI's authority to notify these standards, citing government jurisdiction under the Companies Act, 2013. The ICAI had previously argued these were not auditing standards requiring government notification.
Separately, the ICAI has mandated that all non-corporate entities and limited liability partnerships adopt its guidance notes on financial statements starting from April 1, 2026. A threshold of Rs 5 crore annual turnover applies for earlier adoption from April 1, 2025.
