Chapter VII - Financial Disclosures
Section 34A
Section 34A: Accounting and auditing standards for LLPs
The Central Government may prescribe accounting and auditing standards for classes of LLPs through the process set out in Section 34A.
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Need advice on Section 34A?
This article is for general information. Refer to the Limited Liability Partnership Act, 2008 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The Central Government may, in consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013,— (a) prescribe the standards of accounting; and (b) prescribe the standards of auditing, as recommended by the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949, for a class or classes of limited liability partnerships.
Introduction
Section 34A is an enabling provision. It states who may prescribe standards, whose recommendations and consultation are involved, and that the prescription can be for one or more classes of LLPs. Whether a particular standard currently applies requires checking the resulting notification or rules.
Key takeaways
Government prescription
A standard applies through prescription by the Central Government for the relevant class of LLPs.
Institutional process
The provision refers to consultation with NFRA and recommendations from ICAI.
Class matters
Check whether the prescribed standard covers the LLP's class before applying it.
Identify the LLP class
Determine the LLP's characteristics relevant to any prescribed standard, such as the class described in the current legal instrument.
Find the operative instrument
Check current Central Government notifications and rules issued under Section 34A for the exact accounting or auditing standard, commencement and class covered. Section 34A alone does not list a particular standard.
Apply to reporting
If an instrument covers the LLP, document the applicable standard and reporting period in the accounts or audit plan.
Practical preparation
For a reporting period:
- Identify the LLP class.
- Locate the current prescribing instrument and effective date.
- Record which accounting and auditing standards apply.
Practical checklist
Do
- Keep copies of the applicable prescribed standards and effective dates.
- Reassess classification when the LLP grows or its reporting facts change.
Avoid
- Do not infer that a draft or recommended standard is already mandatory.
- Do not assume one class-specific standard applies to all LLPs.
Illustrative example
Hypothetical: checking a standard before an audit
An LLP plans its annual audit and sees a new standard described as applicable to a specified class of LLPs.
Check class
Compare the LLP's facts with the class in the prescribing instrument.
Check timing
Confirm the instrument's commencement and applicable reporting periods.
Document conclusion
Record the standard and why it applies, or why it does not.
Outcome
- Section 34A supplies the power to prescribe; the instrument, class and effective date determine the LLP's actual obligation.
Glossary
- NFRA
- National Financial Reporting Authority, the body named for consultation in Section 34A.
- ICAI
- Institute of Chartered Accountants of India, whose recommendations are identified in Section 34A.
Frequently asked questions
Does Section 34A itself list the standards to use?
No. It authorises the Central Government to prescribe standards for a class or classes of LLPs through the stated process.
Can standards differ by LLP class?
Yes. Section 34A expressly allows prescription for a class or classes of LLPs.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026