The weekly messenger | Edition 31.19
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Auditing News
FAQs on UDIN for Audit, Assurance & Attest functions – 6 August 2019
The Institute of Chartered Accountants of India (ICAI) has issued revised set of FAQs on UDIN for Audit, Assurance & Attest functions, specifically with respect to the 3rd Phase i.e. all other Attest/ Assurance/ Audit functions including Company Audit Reports, which is effective from 1 July 2019.
Some of the important aspects covered by the FAQs are as follows:
- What is meant by Audit, Assurance & Attestation Services;
- Is it mandatory to mention UDIN on Financial Statements in addition to Audit Reports;
- Whether separate UDIN would be required by Joint Auditor in case of Joint Audits;
- Do one need to take separate UDIN for Statutory Audit of Financial Statements and Tax Audit;
- Is UDIN required for NOC given by previous auditor;
- Is UDIN required by in case of Audit/Limited Review Reports from a Component Auditor to Principal Auditor;
- Is UDIN required in case of Consolidated Financial Statements;
- Whether UDIN is required on Prospective Financial Statements/Information;
- Whether UDIN is required on Provisional Financial Statements/Compilation of Information.
For more information, click here.
Regulatory News
SEBI issued formats for disclosure of reasons for encumbrance by promoter of listed companies – 7 August 2019
In order to bring greater transparency regarding reasons for encumbrance, particularly when significant shareholding by promoter along with persons acting in concert (PACs) with him is encumbered, the Securities and Exchange Board of India (SEBI) has issued enhanced disclosure requirements for promoters of listed companies, wherein the promoter of every listed company, satisfying the prescribed criteria, shall specifically disclose detailed reasons for encumbrance in the format provided at Annexure –II of the issued circular, within two working days from the creation of such encumbrance.
These provisions are effective from 1 October 2019.
For more information, click here.
The Insolvency and Bankruptcy Code (Amendment) Act, 2019 – 5 August 2019
The Insolvency and Bankruptcy Code, 2016 has been further amended by the Insolvency and Bankruptcy Code (Amendment) Act, 2019 due to which the certain sections have undergone changes and certain new sections have been added. These sections inter-alia includes:
- Amendment of Section 5 ‘Definitions’;
- Amendment of section 7 ‘Initiation of corporate insolvency resolution process by financial creditor’;
- Amendment of Section 12 ‘Time-limit for completion of insolvency resolution process’;
- Amendment of Section 25A ‘Rights and duties of authorised representative of financial creditors’;
- Amendment of Section 30 ‘Submission of resolution plan’;
- Amendment of Section 31 ‘Approval of resolution plan’;
- Amendment of Section 33 ‘Initiation of liquidation’;
- Amendment to Section 240 ‘Power to make regulations’.
This Act shall be deemed to have come into force w.e.f. 6 August 2019.
For more information, click here.