The weekly messenger | Edition 38.17

Accounting News

FASB Proposes Clarifications to Land Easements Application Guidance in New Leases Standard – 25 September 2017

The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) which intends to clarify the application of the new leases guidance to land easements. The amendments in this proposed Update would:

• provide clarification as to how the land easements should be evaluated; and
• address stakeholder concerns about the costs and complexity of complying with the transition requirements for land easements.

Comments are to be received by 25 October 2017.

For more information, click here.

FASB Issues Two Proposed ASUs—Technical Corrections and Improvements to Recently Issued Standards – 27 September 2017

The FASB has issued an exposure draft (ED) that contains proposed technical corrections and clarifications to the below mentioned issued standards:

• ASU No. 2016-01: Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities: In this update, FASB made targeted improvements to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments.
• ASU No. 2016-02, Leases (Topic 842): In this update, FASB has clarified 16 issues related to the leases standards which were brought to the FASB’s attention by various stakeholders which includes issues related to residual value guarantees; rate implicit in the lease; lease reassessment of lease classification; lessor reassessment of lease term and purchase option etc.

Comments are to be received by 13 November 2017.

For more information, click here.

IFRS for SMEs Update September 2017 published – 29 September 2017

The September 2017 International Financial Reporting Standard (IFRS) for Small and Medium-sized entities (SMEs) Update has been published which includes information on:

• Reappointment of SME Implementation Group members;
• Responses to draft SMEIG Q&A guidance;
• IFRS for SMEs Standard translations—status report; and
• Where to obtain further information about the IFRS for SMEs Standard.

For more information, click here.

ED and comment letters – Property Plant and equipment – Proceeds before intended use. (Proposed amendments to IAS 16) – 29 September 2017

The International Accounting Standards Board has proposed certain amendments to International Accounting Standard (IAS) 16 Property, Plant and Equipment to reduce the diversity in application of the Standard. The proposed amendments would prohibit the deduction of sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use. Instead, the company would be required to recognise those sales proceeds and related costs in profit or loss.

Comments are to be received by 19 October 2017.

For more information, click here.

Regulatory News

Clarification regarding the timelines for making applicable/available new Form DPT-3 issued vide the Companies (Acceptance of Deposits) Second Amendment Rules, 2017 – 27 September 2017

The Ministry of Corporate Affairs (MCA) had recently amended the Companies (Acceptance of Deposits) Rules, 2014 with the Companies (Acceptance of Deposits) Second Amendment Rules, 2017 wherein it has substituted the existing Form DPT-3 with a new Form. Now, MCA after receiving various enquiries from the stakeholders w.r.t. timelines of the applicability/availability of the new Form DPT-3, has clarified that new Form DPT-3 would be made available for e-filing after the month of November 2017 and till the time the new eform is made available, the existing e-form can be used.

For more information, clickhere.

ED on “Guidelines for Independent Assessment of Statutory Actuarial Valuation”- 25 September 2017

The Insurance Regulatory and Development Authority of India (IRDAI) has issued an ED on “Guidelines for Independent Assessment of Statutory Actuarial Valuation”. The purpose of these guidelines is to provide an additional comfort to the Board of the insurer and to the Authority about credibility and fairness in determination of insurance liabilities in compliance with the existing laws, guidelines, actuarial practice standards and generally accepted actuarial practice so that the financial statements shows a true and fair view in all material aspects of the insurer’s financial position. The ED inter-alia includes the following:

• Applicability;
• Appointing Authority;
• Eligibility Conditions;
• Scope of independent assessment of actuarial valuation;
• Topics to be covered in the independent assessment of actuarial report;
• Submission of report;
• Compliance by the independent assessors of actuarial valuation.

These guidelines shall come into force from financial year ending on 31 March 2018.

For more information, click here.

Clarification on Payment of Service Tax in Transitional Period – 28 September 2017

The Central Board of Excise and Customs (CBEC) has clarified that in cases where service was received before 1-7-2017 and payment was also made before 1-7-2017, but the service tax was paid by 5 /6 July 2017, details of credit should be indicated in Part I of Form ST-3 by filing a revised return. Once details of such credit are reflected in the ST-3, the assesee may proceed to fill in the details in Form GST TRAN-1. 

For more information, click here.

Further GST Updates

The CBEC has issued certain updates w.r.t. Goods and Services Tax (GST)   whose links are as follows: 

• For Central GST (Eighth Amendment) Rules, 2017, click here;
• For exemptions w.r.t. supply of services associated with transit cargo to Nepal and Bhutan(Central GST), click here;
• For exemptions w.r.t. supply of services associated with transit cargo to Nepal and Bhutan (Integrated GST), click here;
• For exemptions w.r.t. supply of services associated with transit cargo to Nepal and Bhutan (Union Territory GST), click here; and
• For extension of time limit for intimation of details in Form GST CMP_03, click here.

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