Treasury share sales by big companies likely
New Delhi   05-Aug-2010

Large companies that have treasury shares in their kitty may sell them in the market before they move into the accounting regime based on International Financial Reporting Standards (IFRS).

Treasury share sales will not be counted as profit or loss under the IFRS regime after April 1, 2011, when large companies will be migrating to the new accounting practice, according to top accounting firms handling IFRS transition for companies.

At present, at least six Indian companies, including Reliance Industries (RIL), United Spirits, Jaiprakash Associates, Mahindra & Mahindra, BPCL and IndianOil ­ hold treasury shares in their books as per the June 30, 2010 share holding data available on stock exchanges.