The weekly messenger | Edition 03.18

Accounting News

IFRS 9 and IFRS 15 are now effective – 8 January 2018

The International Financial Reporting Standard (IFRS) Board had issued the IFRS 9 ‘Financial Instruments’ and IFRS 15 ‘Revenue from Contracts with Customers’ earlier in the year 2014, however the same were not made effective from the very same year. Now, the IFRS Board has notified that IFRS 9 and IFRS 15 would become effective for annual periods beginning on or after 1 January 2018.

For more information, click here.

IASB to issue IFRS Taxonomy Update for IFRS 17 Insurance Contracts – 11 January 2018

The International Accounting Standard Board (IASB) has issued the IFRS Taxonomy Update on IFRS 17 ‘Insurance Contracts’ which includes IFRS Taxonomy elements which reflects the new presentation and disclosure requirements as introduced by IFRS 17 which was issued by the IASB in May 2017.

For more information, click here.

Regulatory News

Relaxation in the provisions relating to levy of MAT in case of companies against whom an application for corporate insolvency resolution process has been admitted under the Insolvency and Bankruptcy Code, 2016 – 6 January 2018

As per section 115JB of the Income-tax Act, 1961, a company is allowed to reduce the lower of the brought forward loss or unabsorbed depreciation while computing the book profits for the purpose of computation of minimum alternative tax (MAT). However, the companies against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016, are not allowed to reduce the brought forward losses while computing its book profit under section 115JB of the Income-Tax Act, 1961. Due to this restriction, certain stakeholders have applied to the Central Board of Direct Taxes (CBDT) in order to get relief of the aforesaid restriction, wherein the CBDT has decided that in case of such companies, the amount of total loss brought forward (including unabsorbed depreciation) shall be allowed to be reduced from the book profit for the purposes of levy of MAT under section 115JB of the Act w.e.f. Assessment Year 2018-19 (i.e. Financial Year 2017-18).

For more information, click here.

FDI policy further liberalized in key sectors – 10 January 2018

The Union Cabinet has further liberalised the Foreign Direct Investment (FDI) policy by giving its approval to various amendments w.r.t. same. The main objective of liberalising the FDI Policy is to provide ease of doing business in the country.
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 College Hostel Mess Fees, click here.