IBBI Mandates 'Robust' Disclosure of Losses Carried Forward in CIRP

The Insolvency and Bankruptcy Board of India (IBBI) has tightened disclosure requirements for insolvency professionals, mandating them to include "comprehensive details" of carry forward of losses in the information memorandum prepared during the corporate insolvency resolution process (CIRP).

- PRIYANSH VERMA

This enhanced disclosure framework is intended to provide potential resolution applicants with more comprehensive understanding of a corporate debtor's (CD) financial position, enabling them to develop more informed and viable resolution plans while considering the benefits of losses carried forward, the IBBI said in a release issued on Monday.

Information memorandum (IM), a key document in the CIRP, is prepared by insolvency professionals (IPs), providing crucial financial and operational details about the CD. It typically includes information on assets and liabilities, financial statements, creditors, litigation, and other material information relevant to the decision-making process.