The weekly messenger | Edition 24.22
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
Compendium of Opinions Volume XLI - Part I – 26 July 2022
The Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) has released the Part-I of 41st Volume of the ‘Compendium of EAC Opinions’ containing Opinions finalised during the period 12 February 2021 to 31 October 2021. Some of the important matters on which the opinions have been provided includes:
- Accounting treatment of expenditure relating to indirect expenses which are compulsorily required to be incurred for construction of the project;
- Presentation of change in non-current asset in Cash Flow Statement;
- Accounting treatment for backstopping arrangement for compulsorily convertible debentures;
- Accounting treatment of Government Grants.
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Regulatory news
Clarification on spending of CSR funds for "Har Ghar Tiranga" campaign –26 July 2022
The Ministry of Corporate Affairs (MCA) has clarified that spending of Corporate Social Responsibility (CSR) funds for the activities related to ‘Har Ghar Tiranga' campaign, such as mass scale production and supply of the National Flag, outreach and amplification efforts and other related activities, would be considered as eligible CSR activities as per the Schedule VII of the Companies Act, 2013.
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SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2022 – 25July 2022
The Securities and Exchange Board of India (SEBI) has issued the SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2022, wherein a new chapter i.e., Chapter XA ‘Social Stock Exchange’ has been inserted, which would be applicable to the following class of entities:
- Not-for-Profit Organization seeking to only get registered with a Social Stock Exchange;
- Not-for-Profit Organization seeking to get registered and raise funds through a Social Stock Exchange;
- For Profit Social Enterprise seeking to be identified as a Social Enterprise under the provisions of this Chapter.
The aforesaid Regulations shall come into force w.e.f. 25 July 2022.
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SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2022 – 25 July 2022
The SEBI has issued the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2022, wherein a new chapter i.e., Chapter IXA ‘Obligations of Social Enterprises’ has been inserted, which would be applicable to the following class of entities:
- For Profit Social Enterprise whose designated securities are listed on the applicable segment of the Stock Exchange(s);
- Not for Profit Organization that is registered on the Social Stock Exchange(s);
The aforesaid Regulations shall come into force w.e.f. 25 July 2022.
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Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector - Updation – 29 July 2022
The Reserve Bank of India (RBI) has issued the ‘Master Directions on lending to Micro, Small & Medium Enterprises (MSMEs) Sector’, which is a compilation of all the instructions / guidelines issued by the RBI to banks relating to lending to the Micro, Small and Medium Enterprises Sector, which are operational as on date.
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