The weekly messenger | Edition 44.18

Accounting News

IASB clarifies its definition of 'Material' - 31 October 2018

The International Accounting Standard Board (IASB) has amended International Accounting Standard (IAS) 1, ‘Presentation of Financial Statements’ and IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’ in order to clarify the definition of ‘material’ and to align the definition used in the Conceptual Framework with that in the standards themselves
 
As per the new definition, the information would be considered material ‘if omitting, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity’.
 
The aforesaid changes in the definition of the material would become effective from 1 January 2020, however, the companies may decide to apply the same earlier also.
 
For more information, click here.
 

FASB Improves Consolidation Accounting – 31 October 2018

The Financial Accounting Standard Board (FASB) has issued an Accounting Standard Update (ASU) No. 2018-17, ‘Targeted Improvements to Related Party Guidance for Variable Interest Entities (VIE)’ in order to reduce the cost and complexity of financial reporting associated with consolidation of VIEs. As per the aforesaid ASU:

• The private companies can elect not to apply the VIE guidance to legal entities which are under common control if both the parent and the legal entity being evaluated for consolidation are not public business entities;
• For the purpose of determining whether fees paid to decision makers and service providers are variable interests, the indirect interest held through related parties in common control arrangements should be considered on a proportional basis. 

For more information, click here.

Regulatory News 

Relaxation of additional fees and extension of last date for filing of forms MGT – 7 (Annual Return) and AOC – 4 (Financial Statements) under the CA, 2013 – 29 October 2018

The Ministry of Corporate Affairs (MCA), after receiving requests from various stakeholders seeking the extension of time for filing of financial statements for the financial year ended 31 March 2018, has decided to relax the additional fees payable by the companies on e- forms AOC –4, AOC (CFS); AOC -4 XBRL and e - Form MGT-7 (Annual Return) up to 31 December 2018 under the Companies Act (CA), 2013, wherever additional fee is applicable .
 
For more information, click here.

Companies to file Half Yearly Return w.r.t its over dues to MSME – 2 November 2018

 
The Central Government (CG) has directed all the companies who are in receipt of goods or services from micro and small enterprises (MSME) and whose payments to MSME suppliers exceed forty five days from the date of acceptance or the date of deemed acceptance of goods or services as per the provisions of the MSME Development Act, to file the half yearly return to the MCA stating the details of amount of payment due and the reason for such delay.
 
For more information, click here.    

Companies with a turnover of more than ₹ 500 Cr. to comply with Trade Receivables Discounting System Platform - 2 November 2018

The CG has issued instructions for all the companies registered under the CA, 2013 having a turnover more than ₹ 500 crore (cr.) and for all Central Public Sector Enterprises wherein, it has asked the aforesaid companies to get themselves on board on the Trade Receivables Discounting System platform, set up as per the notification of the Reserve Bank of India.
For more information, click here.

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 Central GST (Thirteenth Amendment) Rules, 2018, click here