Clarification on SEBI's Circular dated August 13, 2012 providing for the Manner of Dealing with Audit Reports filed by Listed Companies
Summary
SEBI clarifies that restatement of books of accounts requires immediate disclosure of revised pro-forma financial results to shareholders via stock exchanges. The actual financial effects of such revisions may be recorded in the subsequent financial year's annual accounts as a prior period item. This circular is issued under Section 11 read with Section 11A of the SEBI Act, 1992.
Text
the company is required to disclose the effect of revised financial accounts by way of revised pro-forma financial results immediately to the shareholders through Stock Exchange(s). However, the financial effects of the revision may be carried out in the annual accounts of the subsequent financial year as a prior period item so that the tax impacts, if any, can be taken care of.
All Stock Exchanges are advised to ensure compliance with this circular.
Source: SecMarx — Clarification on SEBI's Circular dated August 13, 2012 providing for the Manner of Dealing with Audit Reports filed by Listed Companies. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.