The weekly messenger | Edition 18.17
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
FASB issues update on modification accounting for share based payment awards -11 May 2017
The Financial Accounting Standards Board (FASB) has issued an Accounting Standard Update (ASU) in order to provide clarity and reduce both diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to a change to the terms or conditions of a share based payment award. The amendments in this ASU would affect any entity that changes the terms or conditions of a share based payment award.
The amendments in this ASU would become applicable for all entities for annual periods, and interim periods within those annual periods, beginning after 15 December 2017. However, early adoption is also permitted for certain entities.
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Regulatory News
Companies (Acceptance of Deposits) Amendment Rules, 2017 – 11 May 2017
The Central Government (CG) has amended the Companies (Acceptance of Deposits) Rules, 2014 by the Companies (Acceptance of Deposits) Amendment Rules, 2017 wherein following modifications have been made:
- In sub-clause (xviii) of clause c of rule 2 (1), after the words “Domestic Venture Capital Funds”, the words “Infrastructure Investment Trusts” have been added; which means that any amount received by a company from an Infrastructure Investment Trusts would not be considered as deposits;
- The timelines for the purpose of acceptance of deposits without deposit insurance contract have been deferred by one year i.e. 31 March 2018.
These rules would become applicable from the date of the publication i.e. 11 May 2017.
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Draft ICDS on Real Estate Transactions – 11 May 2017
The Central Board of Direct Taxes (CBDT) has issued a draft Income Computation and Disclosure Standard (ICDS) on Real Estate Transactions which inter-alia includes:
- Scope of ICDS;
- Definitions;
- Real Estate Projects;
- Application of Percentage of Completion Method;
- Transferable Development Rights;
- Transactions with multiple elements;
- Transitional Provisions;
- Disclosures.
Since the draft ICDS on Real Estate transactions is based on Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants of India, therefore, the Committee has also suggested certain significant changes in the Guidance Note.
Comments to be received by 26 May 2017.
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Submission of Statutory returns (SLR – Form VIII) in XBRL platform – 11 May 2017
The Reserve Bank of India (RBI) has decided to move the reporting of Statutory Liquidity Ratio (SLR) from its existing format (PCRPCD) to XBRL (Extensible Business Reporting Language) platform due to which it has advised all the banks to submit their returns (Form VIII) in XBRL from the month of April 2017.
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Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017 – 12 May 2017
CG in exercise of section 11(1) read with clause (c) of the proviso to section 5 of the Specified Bank Notes (SBNs) (Cessation of Liabilities) Act, 2017 has made the Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017 as per which SBNs which have been confiscated or seized by a law enforcement agencies or produced before a court on or before 30 December 2016, such SBNs may be tendered at any office of the RBI specified under section 4(1) of the Act or a nationalised bank designated by the RBI for the said purpose, for deposit in a bank account or exchange of the value thereof with legal tender, subject to certain conditions.
These rules shall not be applicable to the SBNs confiscated or seized after 30 December 2016.
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