The weekly messenger | Edition 33.19

Accounting News

FASB Proposes Effective Date Delay for Insurance Companies Applying Standard on Long – Duration Contracts – 21 August 2019

The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standard Update ‘Financial Services – Insurance (Topic 944): Effective Date’, which would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply a standard that addresses this area of financial reporting.
 
Comments are to be provided by 20 September 2019.
 
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Auditing News

Implementation Guide to SA 720 (Revised) – The Auditor’s Responsibilities Relating to Other Information – 21 August 2019

The Auditing and Assurance Standards Board (AASB) of the ICAI has issued ‘Implementation Guide to SA 720 (Revised) – The Auditor’s Responsibilities Relating to Other Information’, thereby providing guidance on the SA 720 (Revised). The Implementation Guide inter-alia includes:

• Introduction;
• Importance of Reporting on Other Information;
• Frequently Asked Questions and Responses;
• Illustrations of Auditor’s Reports relating to Other Information.

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Implementation Guide to SA 570 (Revised) – Going Concern – 21 August 2019

The AASB of the ICAI has also issued ‘Implementation Guide to SA 570 (Revised) – Going Concern’, thereby providing guidance on the SA 570 (Revised). The Implementation Guide inter-alia includes:

• Introduction and Overview;
• The Implementation Guidance and Suggested Questionnaire;
• Template for Checklists for Evaluating Management’s Use of Going Concern Basis of Accounting;
• Practical Case Studies and Illustrative Examples;
• An Illustrative Template for the Format of Auditor’s Report under Different Scenarios as illustrated in this Implementation Guide;
• Illustrative Format of Support Letter.

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Regulatory News

Clarification under section 232(6) of the Companies Act, 2013 – 21 August 2019

The Ministry of Corporate Affairs has issued a circular, thereby providing clarification with respect to the following questions in relation to the concept of ‘appointed date’ under section 232 (6) of the Companies Act, 2013:

• whether it is mandatory to indicate a specific calendar date as 'appointed date' in the schemes referred to in aforesaid section; and
• whether the ‘acquisition date' for the purpose of Ind AS 103 ‘Business Combinations’ would be the ‘appointed date' referred to in the aforesaid section.

The Circular clarifies that

• the ‘appointed date’ may be specific calendar date or may be tied to the occurrence of an event which are relevant to the scheme.
• the ‘appointed date’ identified under the scheme shall also be deemed to be the ‘acquisition date’ and date of transfer of control for the purpose of conforming to accounting standards (including Ind AS 103).

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SEBI Board Meeting – 21 August 2019

The Securities and Exchange Board of India (SEBI) met on 21 August 2019 and took the following decisions:

• Review of SEBI (Foreign Portfolio Investors) Regulations;
• Norms for permitting companies listed on the Innovators Growth Platform with an option to trade under regular category;
• Review of Buy-backs;
• Amendments to SEBI (Issue and Listing of Debt securities by Municipalities) Regulations, 2015;
• Amendment to SEBI (Credit Rating Agencies) Regulations, 1999;
• Proposed SEBI (Prohibition of Insider Trading) (Third Amendment) Regulations, 2019;
• Amendments to SEBI (Mutual Funds) Regulations, 1996.

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