The weekly messenger | Edition 43.19
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
FASB delays certain effective dates for Credit Losses, Leases, Hedging, and Long – Duration Insurance Standards – 15 November 2019
The Financial Accounting Standards Board (FASB) has issued two new Accounting Standards Updates (ASU), thereby delaying many of the effective dates for new standards on leases, hedging, current expected credit losses (CECL), and long – duration insurance contracts which are depicted in the below mentioned chart:
Standard | Public Business Entities (PBEs) | Private & All Others | |
SEC Filers | All Other Public Business Entities (PBEs) | ||
Hedging | January 2019 (Unchanged) | January 2019 (Unchanged) | January 2021 (Earlier January 2020) |
Leases | January 2019 (Unchanged) | January 2019* (Unchanged) | January 2021 (Earlier January 2020) |
CECL | January 2020 (Unchanged) (Excludes smaller reporting companies, as defined by the SEC) | January 2023 (Earlier January 2021) (Includes smaller reporting companies, as defined by the SEC) | January 2023 (Earlier January 2022) |
Insurance | January 2022 (Earlier January 2021) (Excludes smaller reporting companies, as defined by the SEC) | January 2024 (Earlier January 2021) (Includes smaller reporting companies, as defined by the SEC) | January 2024 (Earlier January 2022) |
* Also includes Employee Benefit Plans and Not – for – Profit Conduit Bond Obligors that file or furnish financial statements with or to the SEC.
For more information, click here.
IFRS Foundation issues Guide on Accounting Policies – 21 November 2019
The IFRS Foundation has issued a ‘Guide – How to select and apply accounting policies’ in order to help companies determine their accounting policies when preparing IFRS financial statements.
For more information, click here.
Regulatory News
ICAI issues ED of ICAI Code of Ethics, 2019 Volume – II – 22 November 2019
The ICAI has issued the Exposure Draft (ED) of its Code of Ethics, 2019 Volume – II, which consists of following:
- Amendments/changes/modifications since 2008 in Chartered Accountants Act, 1949, Chartered Accountants Regulations, 1988, Council Guidelines, 2008, Accounting and Auditing Standards, Companies Act, 2013 etc.;
- Council Decisions and Clarifications given by Ethical Standards Board (ESB) and other Committees (having ethical repercussions) since 2008;
- Changes due to ICAI Code of Ethics, 2019 (based on IESBA Code of Ethics, 2018);
- Decisions of Courts on issues relevant from the point of view of Code of Ethics;
- Miscellaneous changes;
- Changes pursuant to decisions of Council taken.
Comments are to be provided by 21 December 2019.
For more information, click here.
Companies (Meetings of Board and its Powers) Second Amendment Rules, 2019 – 18 November 2019
The Central Government has amended the Companies (Meetings of Board and its Powers) Rules, 2014 with the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2019, wherein in Rule 15 ‘Contract or Arrangement with a Related Party’, certain changes have been made in the limits prescribed for the various transactions to be entered into with related party without a prior approval by means of a resolution.
These Rules shall become applicable from 18 November 2019.
For more information, click here.
Continuous disclosures and compliances by listed entities under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 – 13 November 2019
The Securities and Exchange Board of India (SEBI) (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (‘ILDM Regulations’) prescribe the disclosures to be made by issuers making public issues of debt securities or seeking listing of municipal debt securities issued on private placement basis to the Stock Exchange(s). Consequently, the SEBI vide its circular dated 19 June 2017 had specified continuous disclosures and compliance by issuers of debt securities under ILDM Regulations.
Now, the SEBI has amended the ILDM Regulations to inter-alia:
- Widen the definition of issuers;
- Revise the timelines for submission of annual and half yearly financial results;
- Structure payment mechanism through escrow accounts etc.
For more information, click here.
SEBI Board Meeting – 20 November 2019
The SEBI Board has taken the various decisions with respect to the following in its recent meeting held in Mumbai:
- Issuance of SEBI (Portfolio Managers) Regulations, 2019;
- Review of Rights Issue process;
- Extension of Business responsibility reporting to top one thousand listed entities by market capitalisation;
- Disclosure by listed entities of defaults on payment of interest/repayment of principal amount on loans from banks/financial institutions.
For more information, click here.
Disclosures by listed entities of defaults on payment of interest/repayment of principal amount on loans from banks/financial institutions and unlisted debt securities – 21 November 2019
The SEBI has asked all the listed entities which have their specified securities (equity and convertible securities), Non – Convertible Debt (NCDs) and Non - Convertible Redeemable Preference Shares (NCRPS) listed on the stock exchange to provide the disclosure to the stock exchange, when such entity has defaulted in payment of interest/instalment obligations on loans, including revolving facilities like cash credit, from banks/financial institutions and unlisted debt securities with in prescribed time limit and in a specified format as provided by SEBI.
For more information, click here.