Sebi Asks AMCs to Follow IND AS for Financial Statements

Asset management companies will have to prepare their financial statements and accounts in line with the Indian Accounting Standards (IND AS) from next fiscal.

The Securities and Exchanges Board of India (Sebi) on Friday came out with the guidelines to be followed by AMCs.

The regulator said mutual funds schemes should prepare the opening balance sheet as on date of transition and the comparatives as per the requirements of IND AS.

“Mutual funds schemes may not be mandatorily required to restate the previous years published perspective historical per unit statistics as per requirement of IND AS for the first two years from first time adoption of IND AS,” Sebi said in a circular.

However, mutual fund schemes should furnish additional information in perspective historical per unit statistics. Such as, label the previous Generally Accepted Accounting Principles (GAAP) information prominently as not being prepared in accordance with IND AS and disclose the nature of the adjustments that would be required to make it comply with IND AS. S-ET

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