The weekly messenger | Edition 02.18

Accounting News

ED of Amendments to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance – 5 January 2018

The Institute of Chartered Accountants of India has issued an Exposure Draft (ED) of Amendments to Indian Accounting Standard (Ind AS) 20, Accounting for Government Grants and Disclosure of Government Assistance. The purpose of proposing these amendments in Ind AS 20 is to allow the options to present non-monetary government grants at nominal value and government grants related to assets by deducting the same from the carrying amount of the asset. Following paragraphs have been amended namely:

• Para 23 which relates to “Non-government grants”;
• Para 24-28 which relates to “Presentation of grants related to assets”;
• Para 32 – 33 which relates to “Repayment of government grants” etc.

Comments are to be received by 24 January 2018.

For more information, click here.

FASB Proposes improvements to Lease Standard implementation – 5 January 2018

The Financial Accounting Standard Board (FASB) has proposed an Accounting Standard Update (ASU) with the aim to ease and reduce costs associated with implementation of its new accounting standard for leases. The proposed ASU would make the following changes:

• Add an option for transition to ASU No. 2016-02, Leases (Topic 842), that would permit an organization to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements.
• Add a practical expedient that would permit lessors to not separate nonlease components from the associated lease components if certain conditions are met. This practical expedient could be elected by class of underlying assets; if elected, certain disclosures would be required.

Comments are to be received by 5 February 2018.

For more information, click here.

Regulatory News

Companies (Amendment) Act, 2017 – 3 January 2018

The Central Government (CG) has amended the Companies Act 2013 with the Companies (Amendment) Act, 2017 wherein certain modifications and procedural changes have been made in the existing provisions of the Companies Act 2013. Some of the key highlights of the Companies (Amendment) Act, 2017 are as follows:

• Clarity on definitions for identifying Associate Companies, Holding and Subsidiary Companies, Related Parties etc. has been provided;
• Requirement of annual ratification of auditor has been removed;
• Private placement procedure has been simplified;
• The approval of the CG in case of managerial remuneration above prescribed limits is no longer required;
• Limit of deposit reserves to be created by companies accepting deposits from its members have been increased from 15 to 20%;
• Provisions with respect to loan to directors have been rationalised etc.

This Act shall come into force on such date as the CG may, by notification in the Official Gazette appoint and different dates may be appointed for different provisions of this Act.

For more information, click here.

Circular on Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of Rule 19 of the Securities Contracts (Regulation) Rules, 1957 – 3 January 2018

The Securities Exchange Board of India (SEBI) vide its Circular No. CFD/DIL3/CIR/2017/21 dated March 10, 2017 has laid down the framework for Schemes of Arrangement by Listed entities and relaxation under Rule 19(7) of the Securities Contracts (Regulation) Rules, 1957. Now, after receiving various representations suggesting improvements to the existing regulatory framework which governs the scheme of arrangement; to expedite the processing of draft schemes; and to prevent misuse of schemes to bypass regulatory requirements, SEBI has decided to make certain amendments in the aforesaid circular.

For more information, click here.

FAQs w.r.t. NBFC – Peer to Peer Lending Platform – 4 January 2018

The Reserve Bank of India (RBI) has issued certain clarifications w.r.t. Non- Banking Financial Companies (NBFCs) - Peer to Peer Lending Platform in the form of Frequently Asked Questions (FAQs).

For FAQs, click here.

RBI issues Master Direction on Foreign investment in India – 4 January 2018

The RBI has issued the “Master Directions on Foreign investment in India” wherein it has consolidated all the instructions relevant to foreign investment in India.

For more information, click here.

ED on “IRDAI (Reinsurance) Regulations, 2018” – 5 January 2018

The Insurance Regulatory and Development Authority of India (IRDAI) had formed an Expert Committee on reinsurance on 5 May 2017. Now, the Committee had submitted its report on the same and basis the recommendations of the committee, the IRDAI has proposed the ED on IRDAI (Reinsurance) Regulations, 2018.

Comments and suggestions are to be received by 20 January 2018.

For more information, click here.

GN on CAS on Cost of Service Cost Centre (CAS-13) – 2 January 2018

The Cost Accounting Standard Board of the Institute of Cost Accountants of India has approved the Guidance Note (GN) on Cost Accounting Standard (CAS) -13 on Cost of Service Cost Centre. The GN deals with principles and methods as provided in the CAS-13 and practical aspects in connection with the determination of cost of Service Cost Centre for a product or service. The GN inter-alia includes the following:

• Introduction;
• Definitions;
• Principles of Measurement;
• Assignment of Costs;
• Presentation;
• Disclosures.

For more information, click here.

Further GST Updates

The Central Board of excise and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows:

• For clarifications w.r.t. levy of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.,click here.