The weekly messenger | Edition 19.17
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
Ind AS Transition Facililitation Group (ITFG) Clarification Bulletin 9 – 16 May 2017
Indian Accounting Standards (Ind AS) Transition Facilitation Group (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted to provide clarification on various issues related to applicability and/or implementation of Ind AS under the Companies (Ind AS) Rules, 2015, raised by preparers, users and other stakeholders. Recently, ITFG has issued the ninth set of clarifications. This bulletin contains clarifications on following significant matters:
- Treatment of Dividend Distribution Tax and Deferred tax Liability on accumulated distributed profits of a company in consolidated financial statements
- Clarification in respect of carrying amount of assets and liabilities of the combining entities in the books of accounts of transferee Company.
- Accounting treatment for Government grants in accordance with Ind AS 20.
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FASB issues accounting standards update on service concession- 16 May 2017
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) in order to provide guidance on how an operating entity determines the customer of the operation services for transactions within the scope of Topic 853, Service Concession Arrangements. The amendments in this ASU clarifies that the grantor (government), rather than the third-party drivers, is the customer of the operation services in all cases for service concession arrangements.
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IASB finalises fundamental overhaul of insurance accounting – 18 May 2017
The International Accounting Standards Board (the Board) has issued International Financial and Reporting Standard (IFRS) 17, Insurance Contracts which replaced interim standard, IFRS 4 which was issued in 2004.
IFRS 17 solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner, benefiting both investors and insurance companies. Insurance obligations will be accounted for using current values, instead of historical cost. It shall be applicable for the periods beginning on or after 1 January 2021.
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IASB Foundation publishes proposed Taxonomy Update for IFRS 17 Insurance Contracts – 18 May 2017
IASB has issued IFRS Taxonomy Update for IFRS 17, Insurance Contracts. It covers the financial statements, viz. Statement of Financial Position, Statement of changes in equity, Statement of Profit and Loss, Statement of other comprehensive income meant for filing annual financial statements for companies.
Public comments are to be received by 18 September 2017.
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Regulatory News
Applicability of provisions of clause (a) to clause (d) of section 2 of code relating to voluntary liquidation of bankruptcy- 15 May 2017
Central Government (CG) has appointed 1 April 2017 as the date on which provisions of clause (a) to (d) of section 2 of the Insolvency or Bankruptcy Code relating to voluntary liquidation or bankruptcy shall come into force.
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Transfer of shares to IEPF Authority – 16 May 2017
Ministry of Corporate Affairs (MCA) has withdrawn the circular No. 03/2017 dated 27 May 2017 regarding Transfer of shares to Investor Education and Protection Fund’s (IEPF) Authority w.e.f. 16 May 2017.
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Clarification regarding applicability of section 16(1)(a) of the CA 2013 with reference to cases under corresponding provisions of Companies Act, 1956 – 16 May 2017
MCA has clarified that applications that were rejected by Regional directors under Section 22 (1) (ii) (b) the Companies Act, 1956 on the ground of being time barred, cannot be applied fresh under Section 16 (i) (a) of the Companies Act, 2013, as the extinguished limitation cannot be considered to be revived even if no limitation period has been prescribed, laid down in the said section.
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GST Final Rules & GST Rates – 18 May 2017
GST final Rules and GST rates have been notified w.e.f 18 May 2017.
Seven Goods and Service Tax (GST) Rules have been finalized i.e. Composition Rules, Input Tax Credit Rules, Valuation Rules, Registration Rules, Invoice Rules, Payment Rules and Refund Rules on 18 May 2017. All items under GST are to be taxed under five Tax slabs 0%, 5%, 12%, 18% and 28%. Four GST Formats finalized i.e. Composition forms, ITC Forms, Payments Forms, Refunds.
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