The weekly messenger | Edition 19.22

Accounting News

Technical Guide on Financial Statements of Non-Corporate Entities – 2 June 2022

The ICAI has issued the ‘Technical Guide on Financial Statements of Non-Corporate Entities’, which prescribes the formats for the preparation of financial statements for all non-corporate entities except Limited Liability Partnerships (LLPs) which are corporate form of entities.  

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Regulatory News

Companies (Accounts) Third Amendment Rules, 2022 – 31 May 2022

The Ministry of Corporate Affairs (MCA) has issued the Companies (Accounts) Third Amendment Rules, 2022, wherein the following amendments have been made in Rule 12(1B):

• Due date for filing of form CSR 2 for the FY 2020-21 has been extended from 31 May 2022 to 30 June 2022.

• Further a new proviso has been inserted which states that for the financial year 2021-2022, Form CSR-2 shall be filed separately on or before 31st March 2023 after filing Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS), as the case may be.

These Rules shall come into force w.e.f. 31 May 2022.

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Relaxation in paying additional fees in case of delay in filing all the event-based e – forms by LLPs – 31 May 2022

Due to transition from version-2 of MCA-21 to version-3 and to promote compliance on part of LLPs, the MCA has decided to allow the LLPs to file various event-based LLP e-forms, the due dates of which are falling between 25 February 2022 and 31 May 2022 without the payment of additional fees till 30 June 2022.

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Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 – 1 June 2022

The MCA has issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022, wherein the following changes have been made:

• In Rule 8 ‘Consent to Act as Director’, following new proviso has been inserted: “Provided further that in case the person seeking appointment is a national of a country which shares land border with India, necessary security clearance from the Ministry   of Home Affairs, Government of India shall also be attached alongwith the consent.”

• Further in Rule 10 ‘Allotment of DIN’, a similar proviso has also been inserted which states that: “Provided that no application number shall be generated in case of the person applying for Director Identification Number is a national of a country which shares land border with India, unless necessary security clearance from the Ministry of Home Affairs, Government of India has been attached alongwith application for Director Identification Number”.

• Similar changes have also been made in Form DIR-2 and Form DIR-3

These Rules shall come into force w.e.f. 1 June 2022.

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Driving Sustainability and Creating Value during Unprecedented Uncertainty Key Priorities for Professional Accountants in Business and Public Sector – 31 May 2022

The IFAC’s Professional Accountants in Business (PAIB) Advisory has issued a new report namely ‘Global Priorities for Professional Accountants in Business and the Public Sector’, which features:

• Inflation and the supply chain crunch

• The Circular Economy

• Enabling an integrated mindset in business

• Audit committees and addressing new responsibilities

• Enabling an effective public sector finance workforce   

For more information, click here.