SEBI

SEBI issues Guidelines on Accounting as per IND AS of Mutual Funds Schemes

SEBI issues Guidelines on Accounting as per IND AS of Mutual Funds Schemes

SEBI vide notification dated January 25, 2022 had amended SEBI (Mutual Funds)Regulations, 1996(MF Regulations), which,inter-alia, mandated that the Asset Management Companies (AMCs) shall prepare the Financial Statements and Accounts of the Mutual Fund Schemes in accordance with IND AS with effect from April 01, 2023.

In view of the above, the following guidelines have been specified:

(i) Mutual Fund Schemes shall prepare the opening balance sheet as on date of transition and the comparatives as per the requirements of INDAS.

(ii) Perspective historical per unit statistics mentioned in Clause 6 of Eleventh Schedule of MF Regulations requires disclosure of scheme wise per unit statistics for the past 3 years. In this regard, Mutual Fund schemes may not be mandatorily required to restate the previous years published perspective historical per unit statistics as per requirement of INDAS 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 INDAS. Mutual Funds schemes need not quantify those adjustments.

(iii) The Financial Statements of the Mutual Fund Schemes shall be prepared in the prescribed Format.
 
Further, Modification has been made in SEBI circular CIR/IMD/DF/24/2012 dated November 19, 2012 to align with INDAS requirement regarding transactions cost of investment to be expensed out (viz.to be charged to Revenue Account instead of Capitalisation).

Download Circular SEBI/HO/IMD-II/DOF8/P/CIR/2022/12 Click Here >>

 

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