The weekly messenger | Edition 04.16
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting news
Revised formats for financial results and implementation of Ind AS by listed entities (having listed their debt securities and/or non-cumulative redeemable preference shares)- 10 August 2016
The Securities Exchange Board of India (‘SEBI’) vide Circular No. CIR/IMD/DF1/9/2015, dated 27 November 2015, had prescribed formats for publishing financial results for the entities which have listed their debt securities and/or non-cumulative redeemable preference shares (‘listed entities’). Recently, SEBI has issued a circular, issuing revised formats for publishing financial results for these listed entities. In this circular, in addition to the requirements as stated in circular no. CIR/CFD/FAC/62/2016 dated July 5, 2016, SEBI has advised these listed entities to comply with certain additional requirements. This circular inter alia includes the following:
- The existing formats for disclosure of half yearly and annual financial results shall continue till the period ending on or before 31 December 2016.
- After that period, the disclosure of half yearly and annual financial statements shall be made as per the formats as prescribed in schedule III of the Companies Act, 2013, barring Banking and Insurance companies, which shall follow the formats as prescribed under their respective Act/Regulation.
- The listed entities shall adopt Companies (AS) Rules 2006 until Companies (Ind AS) Rules, 2015 become applicable.
- The formats for publication of financial results in the newspapers are to be used as prescribed in the circular.
- While publishing the financial results, the comparative financial results are to be in compliance with Ind AS. Further, in order to facilitate smooth transition, few relaxations have been given for the first half year of the adoption of Ind AS.
- Certain clarification are provided with regard to implementation of Ind AS.
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FASB proposes concepts for presenting items in Financial Statements- 11 August 2016
The Financial Accounting Standards Board (FASB) has issued an exposure draft (ED) for public comment related to its conceptual framework projection project.
The ED describes proposed concepts as to how recognized items should be presented in the financial statements. It has been designed to provide a foundation for future standards to enhance financial statement users’ abilities to assess prospects for future cash flows. This ED specifically address the following:
- How to group individual recognized items into line items and subtotals, ands
- How to clarify the relationships among assets, liabilities, and equity and the effects of related changes of those assets and liabilities on comprehensive income and cash flows.
The proposal is a part of the FASB’s larger conceptual framework project, which is also addressing measurement and disclosure concepts.
Comments to be received by 9 November 2016.
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Regulatory news
Cabinet approves foreign investment in other Financial Services sector -10 August 2016
The union cabinet has given its approval to amend regulation for foreign investment in Non-Baking Financial Companies (NBFCs).
The amendment in the existing Foreign Exchange Management Regulations on NBFCs will allow the foreign investment in “other financial services” on automatic route, provided some conditions are fulfilled.
Further, minimum capitalisation norms as mandated under FDI policy have been eliminated, as most of the regulators have already fixed minimum capitalisation norms.
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The Factories (Amendment) Bill, 2016- 10 August 2016
The union cabinet has given its approval for amendment of section 64 and section 65 and consequential amendment of section 115 of the Factories Act, 1948 by introducing the Factories (Amendment) Bill, 2016.
These amendments relates to increase in overtime hours from the existing 50 hours per quarter to 100 hours (section 64) and existing 75 hours per quarter to 125 hours (section 65)
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SEBI has issued a circular on Mutual Funds- 10 August 2016
A circular has been issued by SEBI on mutual funds containing following requirements:
- Prudential Limits in Sector exposure for Housing Finance Companies (HFCs)
- Disclosure of votes cast by mutual funds
- Submitting of Final copy of Scheme Information Document (SID) prior to launch of the scheme
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The Benami Transactions (Prohibition) Amendment Act 2016-11 August 2016
The Ministry of Law and Justice has approved the the Benami Transactions (Prohibition) Amendment Act, 2016 which has been published in the official gazette as well.
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