The weekly messenger | Edition 43.18

Accounting News

FASB Updates List of Permissible U.S. Benchmark Interest Rates for Hedge Accounting – 25 October 2018

The Financial Accounting Standard Board (FASB) has issued an Accounting Standard Update (ASU) No. 2018-16, thereby making changes in its Accounting Standard Codification (ASC) - Topic 815, ‘Derivatives and Hedging’ which provides guidance on the risks associated with financial assets or liabilities that are permitted to be hedged, wherein it has made certain additions to its list of permissible benchmark interest rates for hedge accounting.

The purpose of making the amendments is to permit the use of Overnight Index Swap (OIS) rate based on Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.

For more information, click here.

Auditing News

Technical Guide on the Functioning of Audit Committee and its Review Checklist – 29 October 2018

The Corporate Laws & Corporate Governance Committee of the Institute of Chartered Accountants of India (ICAI) has issued the ‘Technical Guide on the Functioning of Audit Committee and its Review Checklist’ which aims to provide guidance on duties and role of Audit Committee for ensuring its effectiveness.

For more information, click here.

Regulatory News

Commencement Notification of certain Sections of the Companies Act, 2013- 24 October 2018

The CG has appointed 24 October 2018 as the date from which the provisions of the sub –sections (2), (4), (5), (10), (13), (14) and (15) of section 132 of the Companies Act, 2013 which relates to functions of National Financial Reporting Authority (NFRA); powers of NFRA; time and place for conducting meetings of NFRA; maintenance of books of accounts by NFRA; audit of accounts of NFRA etc. shall come into force.

For more information, click here.

Report of Insolvency Law Committee on Cross Border Insolvency – 16 October 2018

The Insolvency Law Committee, considering the fact that the existing provisions of the Insolvency and Bankruptcy Code, 2016 (Sections 234 and 235) do not provide a Comprehensive framework for Cross- border Insolvency matters, has decided to attempt to provide a comprehensive framework for such purpose based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency, 1997 by inserting a separate part for this purpose in the Code. For this purpose, the Committee after considering the complexity of the subject matter and other related issues, has issued a report providing its recommendations on adoption of the UNCITRAL Model Law and the modifications necessary in the Indian context.

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 more information w.r.t the categories of persons exempted from obtaining registration under the Integrated GST Act, 2017, click here;

• For more information w.r.t exemption of post audit authorities under MOD from TDS compliance, click here;

• For more information w.r.t the categories of casual taxpayers exempt from obtaining registration under Central GST Act, 2017, click here;

• For more information w.r.t the extension of the time limit for furnishing the declaration in FORM GST ITC-04 for the period from July 2017 to September 2018 till 31 December 2018, click here;

• For more information w.r.t notification of taxpayers whose registration has been cancelled on or before the 30 September 2018 as a class of persons who shall furnish the final return in FORM GSTR-10 till 31 December 2018, click here;

• For more information w.r.t clarification of the procedure in respect of return of time expired drugs or medicines, click here;

• For more information w.r.t clarification on issues pertaining to registration as a casual taxable person & recovery of excess Input Tax Credit distributed by an Input Service distributor, click here;

• For more information w.r.t Clarification on certain issues related to refund, click here; and

• For more information w.r.t Circular on Standard Operating Procedure for Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16, click here.