TFL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Transwarranty Finance's Board of Directors approved a change in accounting policy for measuring investments in subsidiaries and associates. The valuation method has shifted from Fair Value Method (under Ind AS 109) to Cost Method (under Ind AS 27). Previously, these strategic investments were marked to market through profit or loss, causing volatility. Under the new policy, they will be carried at cost less impairment. The change has been applied retrospectively. The company states the revision provides more reliable information since investments are held for strategic purposes rather than trading, and the new method better reflects capital deployed in the lending business.
Shareholders should expect reduced volatility in standalone financial statements since strategic investments will no longer be marked to market. However, this makes earnings potentially less reflective of the actual economic value of subsidiaries and associates.