The weekly messenger | Edition 14.16

Accounting News

GASB proposes OPEB implementation guidance-18 October 2016

Governmental Accounting Standards Board (GASB) has proposed an implementation guidance “Financial Reporting for Post employment Benefit Plans Other Than Pension Plans” in which it has answered more than 150 questions about other post-employment benefit (OPEB) plan accounting. The objective of this implementation guide is to provide guidance that clarifies, explains, or elaborates on the requirements of Statement No. 74, Financial Reporting for Post employment Benefit Plans Other Than Pension Plans. This implementation guide is applicable to the financial statements of all state and local governments.

Comments to be received by 19 December, 2016
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Regulatory News

Special provisions relating to tax on Distributed Income of Domestic Company for Buy Back of Shares – 17 October 2016

The Central Board of Direct Taxes (CBDT) has recently notified the rules for the purpose of clarifying the meaning of distributed income pursuant to buy back, demerger, amalgamation or bonus issue by companies. Till now, there was no specific methodology prescribed for determining the amount received by the company, under different circumstances in which the shares have been issued. The present rules now prescribes the method for computation of ‘amount received’ in 12 different scenarios by a company, depending upon the manner of issue of shares such as regular issue, amalgamation, demerger, bonus issue, conversion of bond or debenture, sweat equity share issue and share-buyback in demat form.
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Disclosure of Financial Information in offer document / placement memorandum for InvITs – 20 October 2016

As per Securities Exchange Board of India (SEBI) (Infrastructure Investment Trusts (InvIT)) Regulations, 2014 certain companies are required to make some specific disclosures in offer documents and placement memorandum which inter-alia, include disclosures for financial information of the InvIT as well as the Investment Manager and the Sponsor.
Now, SEBI through a circular has directed InvITs to disclose the financial information in such offer documents / placement memorandum in a detailed manner as set out in Annexure-A of the said regulations as detailed below:

1.     Financial Information of InvIT

2.     Projections of InvIT’s Revenues and Operating Cash flows

3.     Management Discussion and Analysis of InvIT’s Operations

4.     Other Disclosures for InvIT

5.     Historical financial Information of Investment Manager and Sponsor(s)

6.     Framework for calculation of Net distributable Cash Flows (NDCFs)

7.     Principles for Preparation of combined financial statements

8.     Minimum Disclosures for key financial statements

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