First Notes - 01 December 2015

First Notes - 01 December 2015

SEBI provides relaxation to listed entities for filing financial results under IFRS

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Background
 
The Securities and Exchange Board of India (SEBI) on 2 September 2015 notified the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). As per Regulation 33(1)(c) of the Listing Regulations, standalone financial results and consolidated financial results should be prepared as per the Generally Accepted Accounting Principles (GAAP) in India by the listed entity. Additionally, the listed entity may also submit the financial results, as per the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. As a result of this, the option to publish consolidated financial results as per IFRS was withdrawn. The Listing Regulations would come into force from 90 days of the notification of the Listing Regulation.

New development

Many representations were made by the stakeholders highlighting the issues arising from the implementation of the aforesaid regulation. Accordingly, SEBI, through its letter dated 6 November 2015 has provided following relaxation to the listed entities:

The financial results for the quarters ending 31 December 2015 and 31 March 2016 and year ending 31 March 2016 may be filed under IFRS by listed entities which had exercised the option of preparing consolidated financial statements under IFRS for the first quarter of FY 2015-16, as per the dates specified in the Listing Regulations.

The relaxation granted is without any prejudice to the requirements of the Companies Act, 2013 with respect to reporting of financial statements. 

Our comments

This is a welcome step by SEBI for providing relaxation to listed companies which had exercised the option of preparing consolidated financial statements under IFRS for the first quarter of FY 2015-16.

To access the text of the SEBI letter, please click here

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