The weekly messenger | Edition 47.18

Accounting News

FASB Proposes Narrow-Scope Improvements to Financial Instruments Standards - 19 November 2018

 
The Financial Accounting Standard Board (FASB) has issued a proposed Accounting Standard Update (ASU) – ‘Codification Improvements- Financial Instruments’ that would provide clarification and would also improve areas of guidance with respect to the recently issued standards on credit losses, hedging, and recognition and measurement.
 
Comments are to be received by 19 December 2018.
 
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Auditing News

Withdrawal of the Implementation Guide on Auditor’s Report under Rule 11(d) of Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to Companies Act, 2013 – 23 November 2018

The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has withdrawn the ‘Implementation Guide on Auditor’s Report under Rule 11(d) of the Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to the Companies Act 2013’ which provides guidance w.r.t the disclosure of Specified Bank Notes (SBNs) held and transacted during the demonetisation period i.e. from 8 November 2016 to 30 December 2016 in Auditor’s Report as well as in financial statements as per Schedule III, as the aforesaid disclosure was event specific and was relevant for the Financial year (FY) 2016-17 only and not for the subsequent FY’s.
 
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Regulatory News

The Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Second Amendment Rules, 2018 – 29 October 2018

The Central Government has amended the Chartered Accountants (Procedure of Investigations of Professional and other misconduct of Cases) Rules, 2007 by the Chartered Accountants (Procedure of Investigations of Professional and other misconduct of Cases) Second Amendment Rules, 2018 wherein, it has provided the advocate or the authorised representative appearing before the presiding officer of the Board of Discipline or the committee under Rule 14 ‘Procedure to be followed by the Board of Discipline’ and Rule 18 ‘Procedure to be followed by the Committee’ of the aforesaid rules with an option to appear through video-conference means as well.
 
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The Securities and Exchange Board of India (SEBI) has amended the SEBI (Listing Obligations and Disclosure Requirements (LODR)) Regulations, 2015 with the SEBI (LODR) (Sixth Amendment) Regulations, 2018 wherein the SEBI has made certain modifications, some of which are as follows:

• A new definition of ‘fugitive economic offender’ has been inserted;
• In Regulation 31 ‘Holding of specified securities and shareholding pattern’, a new sub-regulation has been added which states that ‘All entities falling under promoter and promoter group shall be disclosed separately in the shareholding pattern appearing on the website of all stock exchanges having nationwide trading terminals where the specified securities of the entity are listed, in accordance with the formats specified by the Board’. 
• The existing Regulation 31A, ‘Disclosure of Class of shareholders and Conditions for Reclassification’ has been substituted with the new regulation 31A i.e. ‘Conditions for re-classification of any person promoter / public’.
• A new disclosure requirement w.r.t. the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been inserted etc.

These regulations shall come into force on the date of their publication in the official gazette i.e., 16 November 2018.
 
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The SEBI has issued a circular wherein it has directed the listed entities to disclose detailed reasons in case of delay in submission of financial results in accordance with the timelines specified under Regulation 33 of the SEBI (LODR) Regulations, 2015 within one working day of the due date of submission for the results as required under the aforesaid Regulation. However, if the decision w.r.t. the delay in submission of the financial results was taken by the listed entity prior to the due date, then in that case, the listed entity is required disclose the detailed reasons for such delay to the stock exchanges within one working day of such decisions.

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Extension of the Validity period of EPCG Authorization- 16 November 2018

The Director General of Foreign Trade has extended the validity period of Export Promotion Capital Goods (EPCG) Authorisation from 18 months to 24 months. Further, the import validity period of the EPCG Authorisations which have been issued prior to date of issuance of the Public notice prescribing the aforesaid amendment and whose validity has not expired on the date of issuance of this Notice has also been extended to 24 months from the date of the issuance of such authorisation.
 
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