The weekly messenger | Edition 06.18

Accounting News

ITFG Clarification Bulletin 14 – 2 February 2018

Indian Accounting Standards (Ind AS) Transition Facilitation Group (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted to provide clarification on various issues related to applicability and/or implementation of Ind AS under the Companies (Ind AS) Rules, 2015, raised by preparers, users and other stakeholders. Recently, ITFG has issued the fourteenth set of clarifications. This bulletin contains clarifications on following significant matters:
Treatment of processing charges incurred when loans are specifically borrowed for the purpose of a qualifying asset;
Accounting treatment of restoration costs in case of a leasehold land;

• Adjustment of advance payments received from a customer for goods or services to be provided over a long term for the effect of time value of money;
• Incorporation of the books of the transferee company in the standalone financial statements of the transferor company, if the approval from NCLT is received after the end of the financial year but before the approval of the financial statements pertaining to that year;
• Accounting treatment of shares held in stock-in-trade for the purpose of trading by a share broking company covered under Phase II of IND AS Roadmap;
• Accounting treatment of the revaluation surplus as per previous GAAP on transition date and revaluation gain arising after transition date if the company does not apply deemed cost exemption as per IND AS 101;
• Accounting treatment of non-cumulative convertible preference shares issued by the subsidiary to its holding company in case of standalone financial statements of subsidiary company and holding company and consolidated financial statements of the Group.

For more information, click here.

Regulatory News

Appropriation Act, 2018 – 27 January 2018

The Appropriation Act, 2018 authorises the payment and appropriation of certain further sums from and out of the Consolidated Fund of India for services of the financial year 2017-18.
It received the assent of the President on 25 January 2018.

For more information, click here.

Consolidated list of returns prescribed by RBI for banks/NBFCs/OFIs – 1 February 2018

The Reserve Bank’s internal Return Governance Group (RGG) has been monitoring the governance structure of regular returns prescribed for reporting entities, with the objective to rationalise and standardise reporting to RBI. For this purpose, the RBI has published a consolidated list of 248 returns for commercial banks, co-operative banks, small finance banks, payment banks, non-banking finance companies (NBFCs), primary dealers and other financial institutions (OFI) which is placed on its website. For the convenience of reporting entities, the related circulars and formats are also linked as ready reference for ensuring data quality. However, the list does not include certain returns which seek confidential supervisory information in specific cases, which are communicated directly to regulated entities.

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 information w.r.t. postponing of the e-way bill rules from coming into force, click here.
• For information w.r.t. sub section 2A of section 5A of the Central Excise Act, 1944, click here.