The weekly messenger | Edition 36.19

Accounting News

FASB issues revised proposal to improve Balance Sheet Debt Classification – 12 September 2019

The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU), wherein the FASB intends to improve the guidance used to determine whether debt should be classified as a current or noncurrent liability in a classified balance sheet.
 
Comments are to be provided by 28 October 2019.
 
For more information, click here. 

Auditing News

Advisory on Auditor’s Reporting on Section 197(16) of the Companies Act, 2013 – 9 September 2019

The ICAI has issued an advisory w.r.t. Auditor’s Reporting on Section 197(16) of the Companies Act, 2013, wherein it has clarified that the reporting requirement as provided under the aforesaid section for auditors of public companies needs to be covered in auditor’s report under the Section “Report on Other Legal and Regulatory Requirements”.
 
For more information, click here. 

Regulatory News

NFRA (Amendment) Rules, 2019 – 5 September 2019

The Central Government (CG) has amended the National Financial Reporting Authority (NFRA) Rules, 2018 with the NFRA (Amendment) Rules, 2019, wherein the CG has made the following modifications:

• Certain changes have been made in the definition of the term ‘division’;
• A clarification in the form of explanation has been added in ‘Rule 3 Classes of companies and bodies corporate governed by the Authority’ w.r.t. the banking companies which provides that for the purpose of this Rule, ‘banking company” includes ‘corresponding new bank’ as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) and ‘subsidiary bank’ as defined in clause (k) of section 2 of the Stat Bank of India (Subsidiary Bank) Act, 1959’;
• The timelines of filing of Form NFRA -2 ‘Annual Return To Be Filed By Auditor With The NFRA’ has been extended from 30 April to 30 November;
• Format of Form NFRA – 2 has also been provided.

For more information, click here.

Guidelines on procedure for complaint handling in NFRA – 12 September 2019

The NFRA has issued the ‘Guidelines on procedure for complaint handling in NFRA’ which inter-alia includes:

• NFRA’s Role in Non-Compliance with the Companies Act;
• Complaint handling procedure in NFRA;
• Procedure for dealing with whistle blower complaints etc.

For more information, click here.

Scheme of  Arrangement by Listed Entities and (ii) Relaxation under Sub – rule (7) of Rule 19 of the Securities Contracts (Regulation) Rules, 1957 – 12 September 2019

The Securities and Exchange Board of India (SEBI) has amended its circular dated 10 March 2017 w.r.t. streamlining the processing of draft schemes, wherein a further compliance has been added which states that all the listed entities shall ensure that all dues to, and/or fines/penalties imposed by SEBI, Stock Exchanges and the Depositories have been paid/settled before filing the draft scheme with the designated stock exchange. In case of unpaid dues/fines/penalties, the listed companies shall submit to the stock exchanges a ‘Report on the Unpaid Dues’ in the format prescribed by the SEBI containing the details of such unpaid dues prior to obtaining of the Observation Letter from stock exchanges on the draft scheme.
 
The Circular is effective from 12 September 2019.
 
For more information, click here.