The weekly messenger | Edition 35.20
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
ED of GN on Accrual Basis of Accounting – 18 September 2020
The ICAI has issued an Exposure Draft (ED) of Guidance Note (GN) on Accrual Basis of Accounting, which highlights the need for accrual basis of accounting, provides guidance in respect thereof and provides guidance in respect of transition from cash basis to accrual basis of accounting.
Comments are to be provided by 18 October 2020.
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REGULATORY NEWS
Insolvency and Bankruptcy Board of India (Annual Report) Amendment Rules, 2020 – 10 September 2020
The Central Government has issued the Insolvency and Bankruptcy Board of India (Annual Report) Amendment Rules, 2020, wherein the erstwhile Rule 4 ‘Time of furnishing of the Annual Report’ has been substituted by new Rule 4 ‘Time Schedule for submission of annual report’ which is as follows:
“(4) Time Schedule for submission of annual report.-
The dates for submission of the annual report referred to in rule 3 of annual accounts for audit leading to the issue of Audit Certificate by the Comptroller and Auditor General of India and for submission to the Ministry of Corporate Affairs for timely submission to the Parliament are listed below:-
- approved and authenticated annual accounts to be made available by the Insolvency and Bankruptcy Board of India to the concerned Audit Office and commencement of audit of annual accounts- 30th June;
- issue of the final Separate Audit Report (SAR) in English with Audit Certificate to Insolvency and Bankruptcy Board of India-31st October;
- submission of the annual report and audited accounts to the Ministry of Corporate Affairs for it to be laid on the Table of the Parliament- 31st December.”
These Rules shall come into force w.e.f. 16 September 2020.
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Consultation Paper on review of Listing Regulations – 11 September 2020
The Securities and Exchange Board of India (SEBI), has issued a ‘Consultation Paper on review of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)’, wherein it has proposed various amendments to the Listing Regulations. The main objective of proposing such amendments to the Listing Regulations is to strengthen the corporate governance practices and disclosure requirements, ease compliance burden on listed entities, harmonise with the Companies Act, 2013 and maintain consistency within the Listing Regulations.
Comments are to be provided by 11 October 2020.
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Automation of Income Recognition, Asset Classification and Provisioning processes in banks – 14 September 2020
The Reserve Bank of India vide its Circular dated 4 August 2011 had advised the banks to have appropriate IT system in place for identification of Non-Performing Assets (NPAs) and generation of related data/returns, both for regulatory reporting and bank’s own MIS requirements. However, it is being observed that the processes for NPA identification, income recognition, provisioning and generation of related returns in many banks are still not fully automated and manual interventions are being made at various places.
Therefore, in order to ensure the completeness and integrity of the automated Asset Classification (classification of advances/investments as NPA/NPI and their upgradation), Provisioning calculation and Income Recognition processes, banks are advised to put in place / upgrade their systems latest by 30 June 2021.
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Report of Working Group on formation of an Indian Pandemic Risk Pool – 16 September 2020
The Insurance Regulatory and Development Authority of India (IRDAI) vide its Circular dated 8 July 2020, had constituted a Working Group to study and make recommendations on formation of Indian Pandemic Risk Pool.
Now, the Working Group has submitted its report to the IRDAI, which contains extensive review on the subject after several meetings with Life & General Insurers, Re-insurers, FRB’s, International market experts, and Industry Associations. The report focuses on the following points:
- Need and rationale behind setting up a Pandemic Risk Pool. Issues faced by various stakeholders, their suggestions and expectations to that effect;
- Structure, framework and coverage under the Pool;
- Financial capacity of the Pool;
- Pool Product Structure and its Pricing;
- International Practices;
- Recommendations.
For more information, click here.