Accounting for CSR Expenditures : ICAI releases revised edition 2025 of technical guide on

By | February 28, 2025

Accounting for CSR Expenditures : ICAI releases revised edition 2025 of technical guide

Contents

  1. Introduction 1
  2. Objective and Scope 1
  3. Definitions 2
  4. Recognition and Measurement of CSR Expenditure in Financial Statements 4

(a) Expenditure in Cash

(i) Whether Provision for Unspent Amount required to be created?

(ii) Whether the Excess Amount spent is allowed to be carried forward to next year 5

(b) Expenditure made in Kind 6

(c) Surplus from CSR Activities 7

(d) Other Considerations in Recognition and Measurement 7

(e) Recognition of Income Earned from CSR Projects/Programmes or During the Course of Conduct of CSR Activities 9

5. Presentation and Disclosure in Financial Statements 10

6. Summary of Recognition and Measurement of CSR Spent 14

Appendices

Appendix 1: Section 135 of the Companies Act, 2013 – Corporate Social Responsibility 18

Appendix 2: Section 198 of the Companies Act, 2013 – Calculation of Profits 21

Appendix 3: Schedule VII to the Companies Act, 2013 24

Appendix 4: Rules for CSR under Section 135 of Chapter IX 26

Appendix 5: Clarification on contribution to PM CARES Fund as eligible CSR activity under item no. (viii) of the Schedule VII 34

Download Technical Guide on Accounting for Expenditure on Corporate Social Responsibility Activities (Revised January 2025 Edition)

Category: News

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com