The weekly messenger | Edition 10.18

Accounting News

FASB issues technical corrections to financial instruments standard – 28 February 2018

The Financial Accounting Standard Board (FASB) has issued technical corrections and improvements to its financial instruments standard on recognition and measurement of financial assets and liabilities that was originally issued in the year 2016. The amendments basically include items which were brought to the attention of the FASB by the stakeholders. These mainly consist of clarifications which relates to the below mentioned six issues that had the potential to create confusion for financial statement preparers.

• Equity Securities without a Readily Determinable Fair Value— Discontinuation;
• Equity Securities without a Readily Determinable Fair Value— Adjustments;
• Forward Contracts and Purchased Options;
• Presentation Requirements for Certain Fair Value Option Liabilities;
• Fair Value Option Liabilities Denominated in a Foreign Currency; and
• Transition Guidance for Equity Securities without a Readily Determinable Fair Value.

For more information, click here.

Regulatory News

Notification dated 23.02.2018 regarding Exemption for segment reporting – 23 February 2018

The Central Government (CG) has amended the notification no. G.S.R. 463(E) dated 5 June 2015 i.e. w.r.t. the exemption to government companies. In the amended notification, the CG has substituted the serial no. 8 of the aforesaid exemption notification as per which ‘Section 129 of Chapter IX’ would not be applicable to the companies engaged in defence production to the extent of application of relevant Accounting Standard on segment reporting as against the earlier requirement wherein it was mentioned that the aforesaid section would not apply to the extent of the application of AS 17 (Segment Reporting). The purpose of making this change seems to provide the relevant exemption to the aforesaid companies from the application of Ind AS as well.

For more information, click here.

Companies (Accounts) Amendment Rules, 2018 – 27 February 2018

The CG has amended the Companies (Accounts) Rules, 2014 with the Companies (Accounts) Amendment Rules, 2018 wherein a proviso has been inserted in Rule 10 ‘Statement containing salient features of financial statements’ which states that “companies which are required to comply with Companies (Indian Accounting Standards) Rules, 2015 shall forward their statement in the newly inserted Form AOC – 3A”. The format of the new Form AOC – 3A has also been prescribed in the amended rules.
These rules shall come into force from the date of their publication in the Official Gazette.

For more information, click here.

Cabinet approves Establishment of NFRA – 1 March 2018

The Union Cabinet has approved the proposal for establishment of National Financial Reporting Authority (NFRA). The basic aim for the creation of this authority is to establish an independent regulator for the auditing profession which is one of the key changes brought in by the Companies Act, 2013. This decision is expected to result in improved foreign/domestic investments, enhancement of economic growth, supporting the globalisation of business by meeting international practices, and assist in further development of audit profession.

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. enforcement action for fraud in GST Mumbai, click here;
• For clarification regarding GST w.r.t. certain services, click here.