More than one-fourth of top 100 companies listed on the BSE saw their net profit get impacted by the implementation of the new accounting norms and most of the firms provided only minimum disclosures, says a study.
The new norms -- Indian Accounting Standards (Ind AS) -- is mandatorily applicable to certain class of companies starting from April 1, 2016.
“28 per cent of BSE 100 companies experienced more than a 10 per cent impact on their net profit,” said a study on implementation of Ind AS done by leading consultancy EY.
The findings are based on a review of the financial results of BSE 100 companies that were covered in the first phase of Ind AS implementation road map.
“Most of the impact on net profit might have been neutralised by the exemptions availed by companies. In many cases, the net profit impact may not be significant, but the impact on individual accounting captions may be significant,” it noted.