The weekly messenger | Edition 08.18

India | Accounting news

ED of Ind AS 117, Insurance Contracts – 12 February 2018

The Institute of Chartered Accountants of India (ICAI) has issued an Exposure Draft (ED) of the Indian Accounting Standard (Ind AS) 117, Insurance Contracts. The standard states that it would become applicable in India w.e.f. 1 April 2020, however, globally, it would become applicable from 1 January 2021.

Comments are to be received by 31 March 2018.

For more information, click here.

FASB improves Income Tax Accounting related to the Tax cuts and jobs Act – 14 February 2018

The Financial Accounting Standards Board (FASB) has issued an Accounting Standard Update (ASU) in order to help organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.
These amendments shall be applicable to all organizations for fiscal years beginning after 15 December 2018 and interim periods within those fiscal years. However, early adoption is also permitted.

For more information, click here.

India | Auditing news

Implementation Guide to Standard on Auditing (SA) 701, Communicating Key Audit Matters in the Independent Auditor’s Report – 18 February 2018

The Auditing and Assurance Standards Board of ICAI has issued the implementation guide on Standard on Auditing (SA) 701, “Communicating Key Audit Matters in the Independent Auditor’s Report”. The objective of this implementation guide is to provide appropriate guidance on SA 701 to the members so as to enable them to discharge their reporting responsibilities smoothly and effectively. The Implementation Guide includes the guidance in the form of:

• Introduction;
• Frequently Asked Questions (FAQs);
• Illustrative Examples of Key Audit Matters.

For more information, click here.

India | Regulatory news

Companies (Registered Valuers and Valuation) Amendment Rules, 2018 – 9 February 2018

The Central Government (CG) has amended the Companies (Registered Valuers and Valuation) Rules, 2017 with the Companies (Registered Valuers and Valuation) Amendment Rules, 2018, wherein it has amended Rule 11 ‘Transitional Arrangement’ by extending the deadline from 31 March 2018 to 30 September 2018 for the person that were allowed to act as registered valuer under any provision of the Act or rules without getting registered under the Companies (Registered Valuers and Valuation) Rules, 2017

For more information, click here.

Notification regarding commencement of certain sections of Companies Amendment Act 2017 – 9 February 2018

The CG has appointed 09 February 2018 as the date on which the various other sections of the Companies (Amendment) Act, 2017 shall come into force. These mainly relates to:

• Section 2 [except clause (i) and clause (xiii)] definitions;
• Section 3 i.e. insertion of new Section 3A ‘Members severally liable in certain cases’;
• Section 7 i.e. amendment of Section 21 ‘Authentication of documents, proceedings and contracts’;
• Section 9 i.e. amendment of Section 35 ‘Civil liability for misstatements in prospectus’;
• Sections 11 and12 i.e. amendment of Sections 47 ‘Voting rights’ and 53 ‘Prohibition on issue of shares at discount’;
• Section 14 i.e. amendment of Section 62 ‘Further issue of share capital’;
• Section 17 i.e. amendment of Section 76A ‘ Punishment for contravention of Section 73 or Section 76’;
• Sections 27 to 29 (both inclusive) i.e. amendment of Sections 100 ‘Calling of extraordinary general meeting’, 101 ‘Notice of meeting’ and 110 ‘Postal Ballot’;
• Section 32 i.e. amendment of Section 123 ‘Declaration of Dividend’;
• Sections 34 and 35 i.e. amendment of Sections 130 ‘Re-opening of accounts on court’s or Tribunal’s orders’ and 132 ‘Constitution of National Financial Reporting Authority’ etc.

For more information, click here.

Draft Companies (Prospectus and allotment of Securities) Amendment Rules, 2018 – 15 February 2018

The CG has issued the draft Companies (Prospectus and allotment of Securities) Amendment Rules, 2018 which would substitute the existing Companies (Prospectus and Allotment of Securities) Rules, 2014. In the draft rules, the CG has proposed to the substitute the existing Rule 14 ‘Private Placement’ with a new Rule 14.

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 regarding GST in respect of certain services as decided in 25th GST Council meeting, click here.