The weekly messenger | Edition 22.22

Accounting news

Release of Compendium of Ind AS (as on 1 April 2022) and related guidance material – 5 July 2022

The Institute of Chartered Accountants of India (ICAI) has released the ‘Compendium of Ind AS (as on 1 April 2022)’ which is a comprehensive up-to-date version, encompassing all the amendments issued by the Ministry of Corporate Affairs (MCA) till date that are effective as of 1 April 2022.

Further, the guidance material also comprises of IFRS Part B (Accompanying Guidance such as illustrative examples, implementation guidance etc.) and IFRS Part C (Bases for Conclusions).

For more information, click here.

Auditing news

Booklet on Important Decisions of the Ethical Standards Boards/Council – 5 July 2022

The Ethical Standards Boards of the ICAI has summarised some of the important clarifications and decisions and has accordingly issued this booklet on ‘Important Decisions of the Ethical Standards Board/Council’ for the guidance of members. This publication will make the members well equipped to carry out their professional responsibilities.

Some of the important issues addressed in the aforesaid Booklet are as follows:

• Whether a statutory auditor can accept the system audit of same entity.

• Whether CAs can print photographs on the visiting cards?

• Can a chartered accountant exercise lien over the client documents and records until his fees is paid?

• Can a CA Firm print its vision and values behind its visiting cards?

• Whether a CA Firm, which is statutory auditor of a company X can do internal audit in the associate/joint venture company of X?

For more information, click here.

Study on Compliances in Reporting in Tax Audit Report – June 2022

In order to improvise the quality of the tax audits, the ICAI’s Taxation Audits Quality Review Boards has released a publication namely, “Study on Compliances in Reporting in Tax Audit Report”, wherein the aforesaid Board has provided the listing of the certain reporting requirements which need specific attention of members.

For more information, click here.

Guidance Note on CARO 2020 (Revised 2022 Edition) – 14 July 2022

The MCA vide its notification dated February 2020 had issued the Companies (Auditor’s Report) Order, 2020 (CARO 2020). Consequently, in July 2020, the ICAI has issued the Guidance Note on CARO 2020.

Post that in March 2021, corresponding amendments along with some other disclosure requirements were brought out in Schedule III (Division I, Division II and Division III) to the Companies Act, 2013 by the MCA.

Now, in the light of the amendments being made in the Schedule III, the Auditing and Assurance Standards Board (AASB) of the ICAI has issued the revised edition of the aforesaid Guidance Note i.e. ‘Guidance Note on the CARO 2020 (Revised 2022 Edition)’, wherein majorly the cross-referencing has been provided between the various clauses of CARO 2020 and their corresponding Schedule III disclosures to be provided by the management.

For more information, click here.

Regulatory news

Exemption from maintenance of CRR and SLR on Incremental FCNR (B)/NRE Term deposits – 6 July 2022

Presently, banks are required to include all Foreign Currency Non-Resident (Bank) [FCNR (B)] and Non-Resident (External) Rupee (NRE) deposit liabilities for computation of Net Demand and Time Liabilities (NDTL) for maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

Now, the Reserve Bank of India has advised the banks that w.e.f. the reporting fortnight beginning 30 July 2022, incremental FCNR (B) deposits and NRE Term deposits with reference to base date of 1 July 2022, mobilised by banks will be exempt from maintenance of CRR and SLR. However, any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts will not qualify for such exemptions.

The above exemptions would be valid for deposits raised till 4 November 2022.

For more information, click here.

Filing of Business Responsibility and Sustainability Reporting with the Exchange – 12 July 2022

The Securities and Exchange Board of India vide its Circular dated 10 May 2021 has issued the format of the Business Responsibility and Sustainability Reporting (BRSR) along with the Guidance Note.

Now, the Bombay Stock Exchange (BSE) has notified that in order to make the disclosures more accurate and efficient, the Companies will be required to submit the BRSR in Pdf mode as well in XBRL mode.

For more information, click here.