Capital markets regulator Sebi on July 5 allowed more time for listed companies to submit their financial statements that are compliant with the new accounting standards.
With respect to half-yearly results, listed entities can continue to follow the existing formats for financial reporting till the period ending December 31.
The watchdog noted that the time line for submitting financial results in compliance with Ind AS requirements has been extended by one month.
Coming out with a circular in this regard, Sebi said the relaxations are being provided to facilitate smooth transition during the first year of Ind AS implementation by listed entities.
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Indian Accounting Standards (Ind AS), which are converged with the International Financial Reporting Standards (IFRS), are mandatorily applicable on certain class of companies from April 1 this year.
“The results for the quarter ending June 30, 2016 and September 30, 2016 may be submitted by September 14, 2016 and December 14, 2016, respectively,” it noted.
Besides, more time has been given to listed entities for submitting their Ind AS compliant half-yearly balance sheet.
“The existing format… for unaudited/audited quarterly financial results ie. statement of profit and loss and the unaudited/ audited half-yearly balance sheet to be submitted by the listed entities, with the stock exchanges, shall continue till the period ending December 31, 2016,” the circular said.
According to Sebi, for the June quarter, Ind AS compliant financial results for the corresponding three months should be provided.
“For the quarter ending September 30, 2016, Ind AS compliant financial results for the corresponding year to date/ quarter ended September 30, 2015 shall be provided,” the regulator said while adding that in such cases, limited review or audit of the same is not mandatory.
With respect to the quarter ending December, the regulator said submission of Ind AS compliant financial results for the previous year ended March 31, 2016 is not mandatory.
“In case a listed entity chooses to provide Ind-AS comparatives for the period mentioned above to facilitate comparison, the same shall be subjected to limited review or audit,” it added.
Among others, companies with a net worth of Rs 500 crore or more have to mandatorily follow Ind AS from April 2016.
Scheduled commercial banks and insurance companies would have to start implementing Ind AS from April 1, 2018.
Ashish Gupta, Director at Grant Thornton Advisory Pvt Ltd said Sebi’s move provides substantial relief to companies declaring Ind AS compliant results first time in June 2016.
“The circular not only provides additional time for submission of results for June and September quarters, it also clarifies that comparative information need not be audited or reviewed,” he said.
Further, disclosures of reserves and balance sheet information for March 2016 are other relaxations have been given by Sebi. “We welcome this pragmatic move by Sebi,” he added.