Transwarranty Finance Limited has informed the Exchange about General Updates
TFL · price
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Transwarranty Finance Limited's Board of Directors approved a change in accounting policy for measuring investments in subsidiaries and associates. The company shifted from the Fair Value Method (under Ind AS 109) to the Cost Method (under Ind AS 27). Previously, these strategic investments were measured at fair value through profit or loss, causing volatility from market price movements. Under the revised policy, investments are measured at cost less impairment. The company states this better reflects capital deployed in strategic investments and avoids market-price fluctuations obscuring the operating performance of its lending business. The change has been applied retrospectively under Ind AS 8.
This policy change will reduce earnings volatility from mark-to-market movements on strategic investments but may also reduce transparency about current values of subsidiaries and associates in standalone financials. Investors should note this retrospective application affects prior period comparisons.