The weekly messenger | Edition 08.20

Accounting News

Ind AS: Disclosure Checklist (Revised February 2020) – 4 February 2020 

The Accounting Standards Board of the ICAI has issued the revised version of the Ind AS: Disclosure Checklist by the name of ‘Ind AS: Disclosure Checklist (Revised February 2020)’, comprising of the checklist of presentation and disclosures requirements applicable to entities in preparing the financial statements in accordance with Ind AS applicable as on 1 April 2019 including Ind AS 116 ‘Leases’.
For more information, click here.

FASB issues Narrow – Scope Improvements to Financial Instruments Guidance – 9 March 2020

The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) that makes narrow-scope improvements to various aspects of the financial instruments guidance, including the current expected credit losses (CECL) standard issued in 2016.
 
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FASB issues guidance to assist in transition away from Interbank Offered Rates to New Reference Rates – 12 March 2020

The FASB has also issued an ASU that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting.
 
For more information, click here. 

Auditing News

GN on Audit of Banks 2020 edition – 4 March 2020

The Auditing and Assurance Standards Board of the ICAI has issued the revised 2020 edition of the ‘Guidance Note (GN) on Audit of Banks’ , incorporating the impact of developments that have taken place in the banking sector such as master directions/circulars of the Reserve Bank of India (RBI), other relevant circulars issued by RBI, relevant pronouncements of ICAI w.r.t. bank audits, amendments/changes in applicable laws or regulations.
 
For more information, click here.

ED of GN on the Companies (Auditor’s Report) Order, 2020 – 14 March 2020

The Auditing and Assurance Standards Board of the ICAI has issued the Exposure Draft (ED) of the GN on the Companies (Auditor’s Report) Order (CARO), 2020, thereby providing the guidance on the newly introduced CARO.
 
Comments are to be provided by 18 March 2020.
 
For more information, click here. 

Regulatory News

Exemptions to Government Companies under Section 462 of the Companies Act 2013 – 2 March 2020

The Central Government (CG) has issued further amendments in its erstwhile notification G.S.R.463 (E), dated the 5th June,2015 with respect to the exemptions available to the Government Companies from the various provisions of the Companies Act 2013.
 
For more information, click here.

Clarification on prosecutions filed or internal adjudication proceedings initiated against Independent Directors, non-promoters and non-KMP non-executive directors – 2 March 2020

Under the several provisions of the Companies Act 2013, proceedings are required to be initiated against an officer in default for violations committed under the Act. Since, the term ‘officer in default’ is a wider term, therefore, the Ministry of Corporate Affairs (MCA) has come up with certain clarifications on the same. One of the clarification states that in case of any doubts w.r.t. the liability of any person, for any proceedings required to be initiated by the Registrar, guidance may be sought from the Ministry and proceedings shall be initiated only after receiving due sanction from the Ministry.
 
For more information, click here.

Extension of last date of filing of Form NFRA 2 – 5 March 2020

The MCA has decided to extend the timelines for filing of Form NFRA 2 for the reporting period Financial Year (FY) 2018-19 by further 2 months, which is now 150 days (earlier 90 days) from the date of deployment of the said form on the website of National Financial Reporting Authority (NFRA) i.e. 9 December 2019.
 
For more information, click here.

LLP Settlement Scheme, 2020 – 11 March 2020

The CG has introduced a scheme called "LLP Settlement Scheme, 2020", by allowing a one - time condonation of delay in filing statutorily required documents with the Registrar. Under this scheme, the defaulting Limited Liability Partnerships (LLPs) are permitted to file their belated documents along with prescribed fees, which were due for filing till 31 October 2019 as per the provisions of this Scheme.
 
This Scheme would come into force on 16 March 2020 and shall remain in force up to 13 June 2020.
 
Further, the ICAI has also issued certain frequently asked questions (FAQs) on the aforesaid Scheme comprising of the meaning, objective, tenure etc. of this Scheme.
 
For LLP Settlement Scheme, click here;
 
For FAQs, click here.

Companies (Incorporation) Second Amendment Rules, 2020 – 13 March 2020 

The CG has amended the Companies (Incorporation) Rules, 2014 with the Companies (Incorporation) Second Amendment Rules, 2020, wherein the CG has inserted a new sub-clause (iii) in clause (a) in Serial No. 5 of Form No. INC – 28 in the Annexure to the aforesaid Rules namely “(iii) Section of Insolvency and Bankruptcy Code, 2016 under which order passed”.
 
These Rules shall come into force on the date of their publication in the Official Gazette.
 
For more information, click here.

Companies (Registration Offices and Fees) Second Amendment Rules, 2020 – 13 March 2020 

The CG has further amended the Companies (Registration Offices and Fees) Rules, 2014 with the Companies (Registration Offices and Fees) Second Amendment Rules, 2020, wherein the CG has made the following changes in Form GNL-2 in the Annexure to the aforesaid Rules:

• In S.No. 3, after the item number “Form 159 of the Companies (Court) Rules, 1959”, the following item shall be inserted, namely:"Filing under Insolvency and Bankruptcy Code, 2016".
• After the first verification column, the following shall be inserted: “Particulars of the person signing and submitting the form

1. Name __________________________
2. Designation ______________________".

These Rules shall come into force on the date of their publication in the Official Gazette.
 
For more information, click here.

Cabinet approves Companies (Second Amendment) Bill, 2019 – 4 March 2020

The Union Cabinet has approved the Companies (Second Amendment) Bill, 2019, in order to further amend the Companies Act, 2013.The Bill proposes to remove the criminality under the Act in case of defaults, which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest. 
 
This would also lead to further de-clogging of the criminal justice system in the country. 
 
For more information, click here.

Format of the Annual Disclosure to be made by an entity identified as a Large Corporate – 3 March 2020

The Securities and Exchange Board of India (SEBI) had issued a circular SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018 related to ‘Fund raising by issuance of Debt Securities by Large Entities’ wherein the SEBI had prescribed the format of the Annual Disclosure to be made by an entity identified as a Large Corporate w.r.t. the details  of the incremental borrowings done during the FY.  
 
In this regard, the Exchange has introduced a facility in the ‘Listing Centre’ (online portal for submission of various filings by listed companies with BSE) for filing of Annual Disclosure to be made by an entity identified as a Large Corporate. All companies who have been identified as Large Corporate are required file this Annual Disclosure through the Corporate Announcements Module of the Listing Centre.
 
For more information, click here.

RBI issues guidelines for implementation of Ind AS by NBFCs and ARCs– 13 March 2020

The RBI in order to promote a high quality and consistent implementation as well as facilitate comparison and better supervision, has issued regulatory guidelines on implementation of Ind AS by Non -Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs) for preparation of their financial statements from FY 2019-20 onwards.
 
For more information, click here