The weekly messenger | Edition 13.16

Auditing News

Guidance Note on audit of CFS- 17 October 2016

The Institute of Chartered Accountants of India (ICAI) has issued a revised edition of guidance note (GN) on Consolidated Financial Statements (CFS) to incorporate the impact of new developments taken place. The GN does not provide for the guidance with respect to amalgamations/business combinations and does not deal with accounting matters arising on consolidation.

The GN, inter-alia, includes:

• Introduction
• Relevant definitions
• Responsibility of the parent
• Responsibility of the auditor of CFS
• Audit considerations
• Auditing the consolidation
• Special considerations
• Management representations
• Reporting
• Illustrative formats of auditor’s report on CFS

For GN, click here

Regulatory news

Maintenance of SLR- 13 October 2016

Following announcements have been made by the Reserve Bank of India (RBI):

• Statutory Liquidity Ratio (SLR) to be maintained by every scheduled commercial bank, local area bank, primary co-operative bank, state co-operative bank and central co-operative bank.
  • 20.75 per cent from 1 October 2016
  • 20.50 per cent from 7 January 2017

• The form in which SLR assets are to be maintained.

• The SLR securities acquired from RBI under Liquidity Adjustment Facility (LAF) shall be considered as eligible assets for SLR maintenance from 3 October 2016

For more information, click here

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