The weekly messenger | Edition 14.18

Accounting News

IASB seeks comments on proposed amendments to IAS 8 – 27 March 2018

The International Accounting Standards Board (IASB) has published for public consultation proposed narrow-scope amendments to International Accounting Standard (IAS) 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’.

For More information, click here.

IASB completes revisions to its Conceptual Framework – 29 March 2018

The IASB has issued a revised version of its Conceptual Framework for Financial Reporting that underpins International Financial Reporting Standards (IFRS). It basically sets out the fundamental concepts of financial reporting that guide the Board in developing IFRS Standards and also helps to ensure that the Standards are conceptually consistent and that similar transactions are treated the same way, providing useful information for investors and others.

For more information, click here.

Auditing News

Revised SA 299 Joint Audit of Financial Statements – 28 March 2018

The Institute of Chartered Accountants of India (ICAI) has revised the existing Standard on Auditing (SA) 299 ‘Responsibility of Joint Auditors’ and issued the same by the name of Revised SA 299 ‘Joint Audit of Financial Statements’ wherein the ICAI has made certain changes which are more of clarificatory in nature and has emphasised on certain important documentation requirements . The key differences between the revised and the existing standards are as follows:

• The definitions of the key terms i.e. ‘Joint Audit’ and ‘Joint Auditor’ have been provided for in the revised standard;
• More emphasis on the involvement of engagement partner and other key members of the engagement team from each of the joint auditors in the planning stage of the audit has also been added;
• The joint auditors have been asked to obtain the common engagement letter and common management representation letter from the management of the company;
• It has been further provided that in case of difference of opinion among the joint auditors, a reference should be made in both the joint auditor’s report as well as the separate audit report issued by the auditor who is in disagreement under the heading ‘Other Matter Paragraph’ as per Revised SA 706 etc.

For more information, click here.

Regulatory News

Companies (Ind AS) Amendment Rules, 2018 – 28 March 2018

The Central Government (CG) has amended the Companies (Indian Accounting Standards (Ind AS)) Rules, 2015 with the Companies (Ind AS) Amendment Rules, 2018 wherein it has made the following major amendments:

• Introduction of Ind AS 115 ‘Revenue from Contracts with Customers’;
• Omission of Ind AS 8 ‘Revenue’ and Ind AS 11 ‘Construction Contracts’ due to the introduction of Ind AS 115;
• Consequential Amendments in other standards on introduction of Ind AS 115 ;
• A few other amendments.

These rules have become effective w.e.f. 1 April 2018. However, these rules are yet to be published in the Official gazette of India.

For more information, click here.

Condonation of Delay Scheme 2018 – 28 March 2018

The Ministry of Corporate Affairs (MCA) vide its circular no. 16/2017 dated 29 December 2017 had introduced the Condonation of Delay Scheme, 2018 wherein it had provided an opportunity to disqualified directors to regularise the compliance. This scheme was applicable to all the defaulting companies (other than the companies which have been/ whose names have been removed from the register of companies under section 248(5) of the Companies Act 2013). Further, under this scheme, a defaulting company was permitted to file its overdue documents which were due for filing till 30 June 2017 in accordance with the provisions of this scheme.

This scheme was originally applicable for a period of three months i.e. from 1 January 2018 to 31 March 2018. Now, MCA after considering the requests received from various stakeholders has decided to extend the aforesaid scheme up to 30 April, 2018.

For more information, click here.

Relaxation of additional fees and extension of last date of filing of AOC – 4 XBRL E-Forms using Ind AS under the CA 2013 – 28 March 2018

The MCA after considering the requests received from various stakeholders have decided to extend the last date of filing of AOC – 4 Extensible Business Reporting Language (XBRL) E-Forms using Ind AS under the Companies Act 2013 for all the eligible companies which are required to prepare or voluntarily their financial statements in accordance with Companies (Ind AS) Rules, 2015 for the financial year 2016-17 from 31 March 2018 to 30 April 2018 without additional fee.

For more information, click here.

SEBI Board Meeting – 28 March

The Securities Exchange Board of India’s (SEBI) Board met in Mumbai and took the following decisions on various issues:

• Measures for Strengthening Algorithmic Trading Framework;
• Rationalizing and Strengthening the framework of Equity Derivatives Market;
• Proposal for amendment of the regulatory provision permitting charging of additional expenses of up to 0.20% of the daily net assets of MF Schemes;
• Go Green initiative in Mutual Funds;
• Revised Framework for non-compliance of the Listing Regulations;
• Distribution of cash benefits by listed companies through Depositories;
• Amendment to Regulation 40 of SEBI (Listing Obligations Disclosure Requirements (LODR))Regulations, 2015 for mandating transfer of securities only in demat form;
• Public Consultation Process for laying down a framework of compliance with SEBI Regulations by listed entities subject to Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 etc.

For more information, click here.

Payment of Gratuity (Amendment) Act, 2018 – 29 March 2018

The CG has appointed 29 March 2018 as the date on which the Payment of Gratuity (Amendment) Act, 2018 shall come into force wherein the CG has made the following amendments:

• the amount payable to an employee under the said Act shall not exceed twenty lakh rupees as against the earlier limit which was ten lakh rupees;
• total period of maternity leave in the case of a female employee has been extended from ‘twelve weeks’ to ‘twenty-six weeks’.

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 more information w.r.t. clarifications on issues related to Job Work, click here;
• For more information w.r.t. Press Release on "Refund Fortnight", click here;
• For more information w.r.t. extension of due date for filing of application for refund under section 55 by notified agencies, click here ;
• For more information w.r.t. extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Central GST Rules, 2017, click here;
• For more information w.r.t. extension of date for filing the return in FORM GSTR-6, click here;
• For Seeking information w.r.t. the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than Rs. 1.5 crores, click here;
• For Seeking information w.r.t. the due date for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto Rs.1.5 crore, click here;
• For information w.r.t. clarification with respect to the E-way bill System, click here and;
• For information w.r.t. smooth roll out of e-way Bill system from 1st April, 2018, click here.