The weekly messenger | Edition 41.18

Accounting News

ICAI enters into MOU with IFRS Foundation over copyrights of accounting standards – 9 October 2018

The Institute of Chartered Accountants of India (ICAI) has entered into Memorandum of Understanding (MoU), on behalf of Ministry of Corporate Affairs (MCA) with the International Financial Reporting Standards (IFRS) Foundation, the body that oversees the issuer of IFRS Standards. This MoU will formalise the mutual understanding and acceptance of the rights of each party in the copyrights relating to IFRS Standards and Indian Accounting Standards (Ind AS).
 
Apart from the above, the ICAI has also entered into three other agreements with the IFRS Foundation relating to sharing of IFRS knowledge data base and its copyrighted materials with ICAI which will benefit the members and students of ICAI.
 
For more information, click here.   

ED of AS 40, Investment Property – 10 October 2018

 
The Accounting Standard Board (ASB) of the ICAI, as an initiative to upgrade the existing Accounting Standards (AS) and to bring them nearer to the Ind AS, is issuing exposure drafts (EDs) of various ASs which would be  applicable to companies having net worth of less than 250 crore including non- company entities. Recently, the ASB of the ICAI has released an ED on AS 40, ‘Investment Property’ thereby taking Ind AS 40 as a base. 
 
Comments are to be received by 10 November 2018.
 
For more information, click here.
 

Auditing News 

Mandatory Usage of UDIN by Chartered Accountants w.e.f. 1 January 2019 – 10 October 2018

The ICAI has issued a press release, wherein it has reiterated the fact that in order to prevent forgery, the use of Unique Document Identification Number (UDIN) would become mandatory for all practising Chartered Accountants w.e.f 1 January, 2019, whereby they would be required to register all the certificates issued by them with UDIN portal which can be verified by users/ stakeholders.
 
For more information, click here.
 

Regulatory News 

Amendments in Schedule III to the Companies Act, 2013 – 11 October 2018

The Central Government has made certain amendments to Schedule III of the Companies Act, 2013, some of which are as follows:

• Introduction of a new division i.e. ‘Division III’ which deals with the preparation of the financial statements for the Ind AS compliant Non-Banking Financial Companies (NBFCs);
• Replacement of the term ‘Fixed Asset’ by the term ‘Property, Plant and Equipment’ in Division I;
• Addition of new disclosure on outstanding dues to Micro, Small and Medium Enterprises (MSMEs) in Division II;
• Omission of the word reserve from the term ‘Securities Premium Reserve’  in Division I and II;
• Addition of two new sub-classifications in the note requiring the disclosure of trade receivables as well as loans receivables in Division II etc.

For more information, click here.  

Re- Constitution of High Level Committee on CSR- 2018 – 11 October 2018

 
The MCA pursuant to the orders of Hon’ble Minister for Corporate Affairs and in supersession of earlier office order dated 28 September 2018, has re-constituted the High Level Committee on Corporate Social Responsibility (CSR) – 2018 (HLC-2018) in order to review the existing framework and guide and formulate the roadmap for a coherent policy on CSR.
 
For more information, click here.

Further GST Updates

 
The Central Board of Indirect Taxes and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows: 

• For Central GST (CGST) (Eleventh Amendment ) Rules, 2018, click here;
• For CGST (Twelfth Amendment) Rules, 2018, click here;
• For more information w.r.t Constitution of the Appellate Authority for Advance Ruling in the Union Territories (without legislature), click here; and

For more information w.r.t Constitution of the Authority for Advance Ruling in the Union Territories (without legislature), click here.