The weekly messenger | Edition 05.16
This is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting news
ITFG Clarification Bulletin 4- 19 August 2016
Ind AS Transition Facilitation Group (ITFG) of Ind AS (IFRS) Implementation Committee has been formed to provide clarifications on various issues related to the applicability and /or implementation of Ind AS under the Companies (Indian Accounting Standards) Rules, 2015, raised by preparers, users and other stakeholders. Recently, ITFG has issued the fourth set of clarifications. This bulletin contains clarifications on following matters:
- Presentation of excise duty in Ind AS financial statements.
- Revenue recognition criteria in case service tax is collected from customer for rendering of services.
- Applicability of Ind AS for listed and unlisted companies with negative net worth.
- Choosing a transition date.
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FASB Issues new guidance on Not-for-Profit financial reporting- 18 August 2016
The Financial Accounting Standards Board (FASB) has issued an Accounting Standard Update that provides for simplification and improvement on how a not-for-profit organization shall classify its net assets and presents its information in financial statements and notes about its liquidity, financial performance, and cash flows.
The new guidance enables not-for-profits to communicate their financial performance and condition in a better way to their stakeholders by simplifying and improving the face of the financial statements and enhancing the disclosures in the notes. Further, this has also lead to reduction in certain costs and complexities in preparing their financial statements.
The amendments in the standard are effective for annual financial statements issued for fiscal years beginning after 15 December 2017, and for interim periods within fiscal years beginning after 15 December 2018. Application to interim financial statements is permitted but not required in the initial year of application. Early application of the amendments in this Update is permitted.
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Regulatory news
FAQs on SEBI (Alternative Investment funds) Regulations, 2012- 18 August 2016
The Securities Board of India (SEBI) in order to address the queries of various market participants on the applicability and interpretation of SEBI (Alternative Investment Funds) Regulations, 2012, has issued certain FAQs.
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RBI publishes Working Group Report on Corporate Bond Market in India- 18 August 2016
The Reserve Bank of India (RBI) has placed the report of the working group on development of corporate bond market in India on its website which states the recommendations made by the group on market structure, instrument design/valuation, regulation and legal aspects of the corporate bond market. It also includes recommendations for market development based on detailed examination of issues highlighted by earlier committees on the corporate bond market and suggestions received from the market participants.
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FAQs providing clarification on various issues under the IDS 2016 – 18 August 2016
The Central Board of Direct Taxes (CBDT) has issued the fifth set of Frequently Asked Questions (FAQs) providing clarification on various issues under the Income Tax Declaration Scheme (IDS). These FAQs are available on the official website of the Income Tax Department.
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