Revised Formats for Financial Results and Implementation of Ind-AS by
Listed Entities
CIR/CFD/FAC/62/2016
dated 5th July 2016
issued by SEBI
dated 5th July 2016
issued by SEBI
- SEBI vide Circular No. CIR/CFD/CMD/15/2015 dated November 30, 2015, has prescribed formats for publishing financial results.
- SEBI, in consultation with the market participants viz. Listed Entities, Stock Exchanges and Members of the Institute of Chartered Accountants of India ('ICAI'), has now decided the following:
Formats:
The existing formats prescribed in SEBI Circular
dated November 30, 2015 for Unaudited/Audited quarterly financial results i.e.
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.
For the period ending on or after March 31, 2017, the formats for Unaudited/Audited quarterly
financial results i.e. 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 be as per the formats for Balance Sheet and Statement of
Profit and Loss (excluding notes and detailed sub-classification) as prescribed
in Schedule III to the Companies Act, 2013. However, Banking Companies and
Insurance Companies shall follow the formats as prescribed under the respective
Acts/Regulations as specified by their Regulators.
Until Companies (Indian Accounting Standards)
Rules, 2015 ('Ind-AS Rules') become applicable, the listed entities
shall adopt Companies (Accounting Standards) Rules, 2006 ('AS Rules') as
prescribed by the Ministry of Corporate Affairs ('MCA').
The Quarterly / Annual Segment Information
published in compliance with the requirements as prescribed under Accounting
Standard (‘AS’) 17/ Indian Accounting Standard (‘Ind AS’) 108 of the AS Rules/
Ind-AS Rules, as applicable, shall contain the following minimum information: -
- Segment Revenue (including inter-segment revenue);
- Segment Results;
- Segment Assets;
- Segment Liabilities.
Unallocated items, wherever applicable, shall be
shown separately in respect of the above information. Aggregate inter-segment
revenue shall be shown as a deduction from the segment revenue.
While publishing the aforementioned financial
results, the listed entities shall disclose the figures relating to the periods
as mentioned in the respective annexures to the circular dated November 30,
2015.
The financial results published in the
newspapers, in terms of Regulation 47 (1) (b) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'),shall
be in the format as prescribed in Annexure I to the instant circular,
which has now been slightly modified.
Implementation of Ind-AS during the first year:
As mentioned in para 5 of the circular dated
November 30, 2015, the comparatives filed alongwith the quarterly / annual
financial results are required to be Ind-AS compliant. However, in order to
facilitate smooth transition during the first year of Ind-AS implementation,
the following relaxations are being given to the listed entities to which Ind-
AS Rules are applicable from the accounting period beginning on or after April,
1, 2016:
For the quarter ending June 30, 2016 and September 30, 2016:
5.
The timeline for
submitting the financial results in compliance with the provisions of this
Circular is extended by one month. 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.
6.
For the quarter ending
June 30, 2016, Ind-AS compliant financial results for the corresponding quarter
ended June 30, 2015shall 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. However, in such cases, limited review or audit of the same is not
mandatory.
7.
For the quarter ending
June 30, 2016, submission of Ind-AS compliant financial results for the
preceding quarter and previous year ended March 31, 2016is not mandatory. For
the quarter ending September 30, 2016,
submission of Ind-AS compliant financial results and Balance Sheet for the
previous year ended March 31, 2016 is not mandatory. However, in case the
entities intend to submit these results, the same may be without limited review
or audit.
8.
In such cases, the
listed entities shall disclose with due prominence that the Ind-AS compliant
financial results, pertaining to the relevant periods of the previous year as
mentioned in (ii) and (iii) above, as applicable, have not been subjected to
limited review or audit. However, the management has exercised necessary due
diligence to ensure that the financial results provide a true and fair view of
its affairs.
9.
The format of Balance
Sheet for the Half-Yearly ended September 30, 2016 shall be as per the format for Balance Sheet (excluding notes and
detailed sub- classifications) as prescribed in Schedule III to the Companies
Act, 2013.
For the quarter ending December 31, 2016:
10.
The submission of Ind-AS
compliant financial results for the previous year ended March 31, 2016 is not
mandatory.
11.
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.
For all the aforementioned three quarters,
disclosure of the line item - Reserves(excluding Revaluation Reserves), as per
Balance sheet of the previous accounting year ended March 31, 2016, as
prescribed in the existing formats for quarterly financial results is not
mandatory.
In case the listed entity has subsidiaries /
Joint Ventures / Associates, the entity may exercise the option under
Regulation 33(3)(b)(i) of the Listing Regulations to submit
quarterly/year-to-date consolidated financial results in the second quarter
instead of the first quarter of the financial year and this option shall not be
changed during the remaining part of the financial year.
For listed entities to which Ind AS Rules are
applicable in subsequent phases (beginning from the Financial Year 2017-18,
2018-19 and 2019-20), the relaxations as mentioned in para 2.6 above shall
mutatis-mutandis apply during their corresponding first year of Ind-AS
implementation.
Clarifications on issues with regard to Ind-AS
implementation:
The listed entities in order to comply with the
requirements of paragraph 32 of Ind AS 101 - First time Adoption of Ind AS,
shall provide a reconciliation of its equity and net profit / loss, in the
following manner, for enabling the investors to understand the material adjustments
to the Balance Sheet and Statement of Profit and Loss on account of transition
from the previous Indian GAAP to Ind-AS:
12.
Reconciliation of its
equity for the previous year ended March 31, 2016, shall be provided while
submitting the Audited Yearly Balance Sheet for the period ended March 31, 2017.
Reconciliation of its equity for the previous
year ended March 31, 2016, shall be provided in case the listed entity intends
to provide the same while submitting the Unaudited/Audited Ind-AS compliant
Half-Yearly Balance Sheet for the period ended September 30, 2016.
13.
Reconciliation of its
net profit / loss as mentioned in the Unaudited/Audited quarterly financial
results shall be provided only for the corresponding quarter of the previous year.
A listed entity may historically have a year-end
other than 31st day of March, and may now be required to prepare financial
statements for a period longer or shorter than the normal 12 month period for
coinciding with 31st day of March as prescribed under Section
2 (41) of the Companies Act, 2013. In such
cases, the Ind-AS financial statements for various periods beginning from April
01, 2016, shall have comparative information for a shorter or longer period
i.e. beginning from a date other than 1st of April 2015.The listed entity, in
such cases, shall disclose a suitable note, with due prominence, that
comparative amounts presented in the Quarterly / Half-yearly / Year to date /
Annual financial results are not entirely comparable.
In case of any technical difficulty in the
interpretation of any specific item in the formats or implementation of this
circular while publishing the financial results, the listed entities shall be
guided by the relevant provisions of the Ind-AS Rules / AS Rules and Schedule
III to the Companies Act, 2013 and may make suitable modifications, as
applicable. The listed entities shall also provide suitable explanations and
clarifications, wherever felt necessary.
This Circular shall come
into force with immediate effect and the contents of the circular dated
November 30, 2015, shall stand modified to the extent stated under this
circular.
ANNEXURE I
Format for Newspaper Publishing Purpose
(Standalone / Consolidated)
[See Regulation 47(1) (b) of the SEBI (LODR)
Regulations, 2015]
|
Sl.
No.
|
Particulars
|
Quarter
ending/Current Year ending
|
Year
to date Figures/Previous Year ending
|
Corresponding
3 months ended in the previous year
|
|
|
1.
|
Total Income from Operations
|
||||
|
2
|
Net Profit / (Loss) for the period
(before Tax, Exceptional and/or Extraordinary items#)
|
||||
|
3.
|
Net Profit / (Loss) for the period
before tax (after Exceptional and/or Extraordinary items#)
|
||||
|
4.
|
Net Profit / (Loss) for the period
after tax (after Exceptional and/or Extraordinary items#)
|
||||
|
5.
|
Total Comprehensive Income for the
period [Comprising Profit / (Loss) for the period (after tax) and Other
Comprehensive Income (after tax)]
|
||||
|
6.
|
Equity Share Capital
|
||||
|
7.
|
Reserves (excluding Revaluation
Reserve) as shown in the Audited Balance Sheet of the previous year
|
||||
|
8.
|
Earnings Per Share (of Rs. ___/-
each) (for continuing and discontinued operations) -
|
NOTE:
- The above is an extract of the detailed format of Quarterly/Annual Financial Results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly/Annual Financial Results are available on the websites of the Stock Exchange(s) and the listed entity. (URL of the filings).
- The impact on net profit / loss, total comprehensive income or any other relevant financial item(s) due to change(s) in accounting policies shall be disclosed by means of a footnote.
- # - Exceptional and/or Extraordinary items adjusted in the Statement of Profit and Loss in accordance with Ind-AS Rules / AS Rules, whichever is applicable
© All rights reserved with Jus Scriptum.
No comments:
Post a Comment