ICAI withdraws Guide to Reporting on Proforma Financial Statements

Auditing and Assurance Standards Board
The Institute of Chartered Accountants of India
4th, August 2022

ANNOUNCEMENT

Withdrawal of the Guide to Reporting on Proforma Financial Statements (Pursuant to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009)

I.   In October 2012, the Auditing and Assurance Standards Board ("the Board") of the ICAI issued the "Guide to Reporting on Proforma Financial Statements (Pursuant to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009)". The aforesaid Guide is based on the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

II.   Subsequent to issue of the aforesaid Guide, the ICAI issued Standard on Assurance Engagements (SAE) 3420, "Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus" in February 2016. The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 have been replaced by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

III.   The Board at its 205th meeting held on 31st January 2022 considered an agenda item regarding the aforesaid Guide. At the meeting, the Board was of the view that the aforesaid Guide is not relevant in the present scenario because the aforesaid Guide is based on old Regulations issued by SEBI which do not exist today. The Board was also of the view that SAE 3420 provides sufficient guidance for practitioners who undertake engagements to certify/report on Proforma Financial Statements included in a prospectus. At the meeting, the Board decided to withdraw the aforesaid Guide. Accordingly, the aforesaid Guide is withdrawn with effect from the date of hosting of this Announcement on the ICAI’s website.

Auditing and Assurance Standards Board