Consultation paper on proposed IFSCA (Preparation & Presentation of Financial Statements

International Financial Services Centres Authority (IFSCA or Authority) vide its press release dated November 21, 2022 has sought comments / suggestions from general public and stakeholders on the proposed IFSCA (Preparation & Presentation of Financial Statements of IIOs) Regulations, 2022 (“Proposed Regulation”).

Background – The IFSCA by virtue of the proposed regulation intends to further strengthen the regulatory framework on aspects of preparation & presentation of financial results in line with international best practices

Objective – To put in place the process of Preparation of Financial Statements of the International Financial Service Centre Insurance Offices (IIO).

The key provisions as mentioned under the Proposed Regulations are as below:

• The Proposed Regulations specifies certain important definitions such as accounting year, parent entity etc.
• IIO shall prepare and present its financial statements in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).
• IIO which is set up in an unincorporated form shall prepare and present its financial statements in accordance with the Accounting Standards applicable to its Parent Entity.
• Accounting principles for preparation & presentation of Financial Statements as prescribed under Schedule A, Schedule B or Schedule C as applicable to be followed by the insurers.
• All the financial reporting to the Authority shall be in USD, unless otherwise specified by the Authority.
• Annual Report shall be submitted within 90 days from end of the financial year and shall contain Board of Director report, Management Discussion & Analysis report, Risk management governance report, Corporate governance Report, Actuarial Report etc.
• The disclosures shall be made pertaining to change and impact therein pertaining to Accounting standards and Accounting policies.
• Books of accounts and other documents to be preserved in electronic retrieval form for a minimum period of 20 years. Further, all the documents referred in the proposed regulation to be retained for a period of atleast 7 years from the end of the year to which they relate.
• The IIO shall comply with the requirements as prescribed within 6 months from the date commencement of the Regulation.

Source category: IFSC Insurance Office

Attachments

• /2022/114_IFSCA(~12.PDF
• /2022/114_Press_release.pdf