Market watchdog Securities and Exchange Board of India (SEBI) has eased norms on reporting quarterly financials for companies adopting the new accounting standard (Indian Accounting Standard) for the first time from FY17.

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The norms will also be applicable to companies subsequently adopting Ind AS. However, these relaxations will be optional.

The norms involve two phases, firstly the quarter one (Q1FY17) and second quarter (Q2FY17); secondly the third quarter (Q3FY17). After, the third quarter, the existing pattern of presenting financial statement will be followed.

Sandeep Gupta, Somil Shah and Mehul Parikh analyst from Motilal Oswal stated, that such scenario is likely to create ambiguity whether revenues have to be reported as gross of excise (as required under Ind AS) or as net of excise (as required under the existing format).

According to Motilal Oswal data, following are the measures that are granted for the first adopter:

The companies will get an extended timeline of one month in reporting financial statements for Q1 and Q2FY17.

Further more, in the first two quarters, the adopter will have to provide the year-on-year (YoY) comparable of financials (wherein limited review/audit will not be compulsory)

Lastly, the presentation of yearly financials for FY16 is not mandatory for all Q1, Q2 and Q3FY17.

However, the norm is unclear on providing the comparable half yearly balance sheet with Q2FY17 results.

Currently, the companies have a one-time yearly choice in Q1 of either reporting standalone or consolidated quarterly financials. This option will also be available in Q2 this year.