The weekly messenger | Edition 10.21
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
ACCOUNTING NEWS
Volume XXXIX of the Compendium of Opinions – April 2021
The Expert Advisory Committee (EAC) of the ICAI has issued the 39th volume of ‘Compendium of EAC Opinions’, comprising of opinions finalised by it between 12 February 2019 and 11 February 2020. Some of the important matters on which the opinions have been provided includes:
- Accounting treatment under Ind AS for depreciation of ‘enabling assets’, amortization of leasehold land and project insurance in case of a new company formed for setting up of new urea plant which is under construction phase.
- Consolidation of joint venture company (JVC) wherein the relevant economic activity and the purpose of formation of JVC got ceased.
- Company’s policy on transfer price for segment revenue and segment results under segment reporting.
- Revenue recognition of real estate units under construction under Ind AS 115.
- Accounting for Embedded Derivatives in Non-Financial Host Contracts as per Ind AS 109.
- Presentation of gain or loss on account of mark to market valuation of the derivative contracts resulting from movements in exchange rates and interest rates of the underlying currencies.
- Accounting for Concession Agreement.
- Disclosure/classification of late payment interest charges collected from customers in the statement of cash flows.
For more information, click here
REGULATORY NEWS
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 – 4 April 2021
The President has promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, wherein various amendments have been made in the Insolvency and Bankruptcy Code, 2016.The basic objective of issuing these amendments is to provide an efficient alternative insolvency resolution process for corporate persons classified as micro, small and medium enterprises under the Insolvency and Bankruptcy Code, 2016, ensuring quicker, cost-effective and value maximising outcomes for all the stakeholders, in a manner which is least disruptive to the continuity of their businesses and which preserves jobs.
For Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, click here.
For Corrigenda, click here.
IBBI notifies the IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 – 9 April 2021
Pursuant to the notification of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, which also provides for introduction of a pre-packaged insolvency resolution process for corporate persons classified as micro, small and medium enterprises, the Insolvency and Bankruptcy Board of India (IBBI) has issued the IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 and the relevant rules for the same.
These Regulations details the forms to be used by the stakeholders and the manner of carrying out various tasks under the aforesaid Regulations.
These Regulations shall come into force w.e.f. 10 April 2021.
For IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021, click here.
For Insolvency and Bankruptcy (Pre-packaged Insolvency Resolution Process) Rules, 2021, click here.
Relaxation in the period of parking of unutilised ECB proceeds in term deposits – 7 April 2021
Under the existing External Commercial Borrowings (ECB) framework, the ECB borrowers are allowed to place the ECB proceeds in term deposits with AD Category-I banks in India for a maximum tenure of 12 months.
Considering the difficulties being faced by the borrowers in utilizing the already drawn down ECBs owing to the restrictions being imposed due to ongoing pandemic, the Reserve Bank of India (RBI) has decided to relax the above requirement as a one-time measure, with a view to provide relief.
Accordingly, it has been notified that the unutilised ECB proceeds drawn down on or before 1 March 2020 can be parked in term deposits with AD Category-I banks in India prospectively for an additional period up to 1 March 2022.
For more information, click here.
Consolidated Regulations – 9 April 2021
For the benefit of regulated insurance entities, the Insurance Regulatory and Development Authority of India (IRDAI) has consolidated all the regulations pertaining to the respective subjects (e.g. Health, TPA, Advt etc.) and made them available at one common platform.
For more information, click here.