The weekly messenger | Edition 05.19

Accounting News

January 2019 IFRIC Update published- 22 January 2019

The International Financial Reporting Standards Interpretation Committee (IFRIC) held its meeting in January 2019, wherein it took various decisions w.r.t. the following topics: 

• Assessment of promised goods or services (IFRS 15 Revenue from Contracts with Customers);
• Investment in a subsidiary accounted for at cost: Partial disposal (IAS 27 Separate Financial Statements);
• Investment in a subsidiary accounted for at cost: Step acquisition (IAS 27 Separate Financial Statements); and other matters.

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IASB decides on further potential amendments to IFRS 17 – 23 January 2019

The International Accounting Standards Board (IASB), in its meeting held in the month of January 2019 decided to propose targeted improvements in the following three areas of IFRS 17, ‘Insurance Contracts:

• Recognition of contract costs;
• Reinsurance Contracts; and
• Investment service elements of a contract.

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Compendium of ITFG Clarification Bulletins (including clarifications issued till December 2018) – 25 January 2019

 
The Institute of Chartered Accountants of India (ICAI) has issued the Compendium of Ind AS Technical Facilitation Group (ITFG) Clarification Bulletins issued till December 2018. The purpose of issuing this publication is to bring all the issues clarified through 17 ITFG Clarification Bulletins at one place for ease of reference of the members and other stakeholders.
 
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Auditing News

UDIN mandatory w.e.f. 1 Feb. 2019 for all certificates – 24 January 2019

 
The ICAI has issued an announcement, wherein it reiterated the fact that the concept of Unique Document Identification Number (UDIN) would become effective from 1 February 2019 on mandatory basis.
 
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Regulatory News

ICSI issues GN on Dividend - 22 January 2019

 
The Institute of Company Secretaries of India (ICSI) has issued a ‘Guidance Note (GN) on Dividend’, which sets out the explanations, procedures and practical aspects w.r.t. the provisions contained in ‘Secretarial Standard on Dividend (SS-3)’ to facilitate compliance thereof by the stakeholders. The GN inter-alia includes:

• Introduction;
• Scope;
• Definitions; and
• Guidance on the provisions of SS-3 etc.

For more information, click here.

 
The Central Government (CG) has amended the Companies (Prospectus and Allotment of Securities) Rules 2014 with the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019, wherein the CG has inserted a new sub-rule i.e sub-rule (11) in Rule 9A, ‘Issue of securities in dematerialised form by unlisted public companies’, which states that aforesaid rule shall not be applicable to an unlisted public company if such company is a nidhi company; a government company or a wholly owned subsidiary company.
 
These rules shall come into force w.e.f. 22 January 2019.
 
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The CG has amended the Companies (Acceptance of Deposits) Rules, 2014 with the Companies (Acceptance of Deposits) Amendment Rules, 2019, wherein the following changes have been made:

• In clause (c) of sub-rule (1) of Rule 2, ‘Definitions’, which provides for the exceptions to the definitions of deposits, a new exception has been inserted in clause (xviii) which states that any amount received by a company from a Real Estate Investment Trusts would not be considered as deposits;
• In rule 16, ‘Return of Deposits to be Filed with the Registrar’, an explanation has been added wherein it has been clarified that Form DPT – 3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than government company;
• Insertion of a new sub-rule (3) under Rule 16 (A), ‘Disclosures in the financial statement’, which states that every company other than government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits as per Rule 2(1)(c) from 1 April 2014 to 22 January 2019 in FORM DPT-3 within 90 days from 22 January 2019 along with the fees as provided in the Companies (Registration Offices and Fees) Rules, 2014; and
• FORM DPT-3 has been substituted with a new form.

These rules shall come into force on the date of their publication in the Official Gazette i.e 22 January 2019.
 
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The Ministry of Corporate Affairs (MCA), in November 2018 had directed companies, having payments overdue to micro and small enterprises by 45 days or more to submit half yearly returns. Now, the MCA has released the format of the same i.e. MSME Form I. Furthermore, to start with, existing companies have been asked to file the said form within 30 days from the date of publication of the said notification (22 January 2019).
 
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SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2019- 21 January 2019

The Securities and Exchange Board of India (SEBI) has amended the SEBI (Prohibition of Insider Trading) Regulations, 2015 with SEBI (Prohibition of Insider Trading) Amendment Regulations, 2019, wherein it has made certain modifications, some of which are as follows:

• In regulation 2, ‘Definitions’, the existing clause (ha)has been renumbered as clause (hb) and a new definition of ‘promoter group’ has been inserted under clause (ha);
• In sub-regulation (1) ‘Initial Disclosures’ of Regulation 7, ‘Disclosures by certain persons’, which states that ‘every promoter, key managerial personnel and director of every company whose securities are listed on any recognised stock exchange shall disclose his holding of securities of the company as on the date of these regulations taking effect, to the company within thirty days of these regulations taking effect’), after the word ‘promoter’ and before the word ‘key’, the words ‘member of the promoter group’ have been added etc.

The aforesaid amendments shall come into force on the date of their publication in Official Gazette i.e. 21 January 2019.
 
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