The Securities and Exchange Board of India on 4th February 2022 has published a set of guidelines for asset management companies (AMCs) with respect to following Indian Accounting Standards (Ind AS).
As per the earlier amendment dated 25th January 2022 on SEBI (Mutual Funds)Regulations, 1996(MF Regulations), which, inter-alia, mandated that the AMCs shall prepare the Financial Statements and Accounts of the Mutual Fund Schemes in accordance with IND AS with effect from April 01, 2023.
Therefore in accordance with that, Sebi has directed the mutual fund schemes to prepare the opening balance sheet as on date of transition and the comparatives as per the requirements of IND AS.
Further Mutual Fund 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 INDAS. However, Mutual Fund schemes shall furnish following additional information in perspective historical per unit statistics:
a. Label the previous Generally Accepted Accounting Principles (GAAP)information prominently as not being prepared in accordance with INDAS; and
b. Disclose the nature of the adjustments that would be required to make it comply with IND AS. Mutual Funds schemes need not quantify those adjustments.
The financial statements of the mutual fund schemes will have to be prepared in a formats specified by SEBI.
