The weekly messenger | Edition 06.20

Accounting News

Educational Material on Ind AS 20, ‘Accounting for Government Grants and Disclosure of Government Assistance’ – 18 February 2020

The ICAI has issued an Educational Material on Ind AS 20, ‘Accounting for Government Grants and Disclosure of Government Assistance’, in order to provide guidance by way of Frequently Asked Questions (FAQs) and illustrations explaining the principles enunciated in the aforesaid standard.
 
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Regulatory News

ICAI invites suggestions/comments from members on Consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability – 18 February 2020

The Ministry of Corporate Affairs (MCA) has issued a Consultation Paper, in order to examine the existing provisions of law and make suitable amendments therein, to enhance audit independence and accountability, thereby inviting the comments on the same till 28 February 2020.
 
Now, the ICAI has also invited suggestions/comments from its members on the aforesaid Consultation paper by 21 February 2020. 
 
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Companies (Registration Offices and Fees) Amendment Rules, 2020 – 18 February 2020

The Central Government (CG) has amended the Companies (Registration Offices and Fees) Rules, 2014 with the Companies (Registration Offices and Fees) Amendment Rules, 2020, wherein the form GNL-2 ‘Form for submission of documents with the Registrar’ has been substituted with a new form.
 
These Rules shall come into force w.e.f. 19 February 2020.
 
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Companies (Incorporation) Amendment Rules, 2020 – 18 February 2020

The CG has amended the Companies (Incorporation) Rules, 2014 with the Companies (Incorporation) Amendment Rules, 2020, which includes the following changes:

• A new web Form SPICe+ has been introduced, thereby replacing the existing form SPICe; 
• The application for incorporation of a company would be accompanied by e-form AGILE-PRO w.e.f. 23 February 2020, containing an application for registration of the following numbers:

1. GSTIN;
2. EPFO;
3. ESIC;
4. Profession Tax registration;
5. Opening of bank account.

• Forms RUN, e forms INC-32 (SPICe), INC-35 (AGILE) and form INC-9 have been substituted with e-forms SPICe+ and INC-35 (AGILE-PRO) and RUN (Reserve Unique Name) for change of name only.

These Rules shall come into force w.e.f. 23 February 2020.
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MCA notifies CARO 2020 – 25 February 2020

The MCA after consultation with the National Financial Reporting Authority (NFRA), has issued the Companies (Auditor’s Report) Order, 2020 (‘CARO 2020’) containing 21 clauses, as against the erstwhile CARO 2016, which consist of 16 clauses. The Reporting under the new CARO i.e. CARO 2020 would be applicable for the financial years commencing on or after 1 April 2019. Additional matters on which reporting is required under the new CARO are:

• Revaluation of Property, Plant and Equipments and intangible assets;
• Internal audit system;
• Cash losses;
• Deemed deposits;
• Resignation of the statutory auditors;
• Transfer of unspent CSR amount to Fund specified in Schedule VII;
• Treatment of whistle-blower complaints received;
• Uncertainty of company capable of meeting its liabilities;
• Proceedings under the Benami Transactions (Prohibition) Act, 1988;
• Transactions not recorded in the books disclosed as income in the income tax proceedings;
• Adverse remarks by the auditors in the CARO reports included in CFS.

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Filing of forms in the Registry (MCA-21) by the Insolvency Professional (Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator) appointed under IBC, 2016 – 17 February 2020

The Ministry has received various requests with respect to filing of documents in the MCA-21 registry, wherein an Insolvency Professional (lnterim Resolution Professional (lRP) or Resolution Professional (RP) or Liquidator) has been appointed under IBC, 2016 in respect of a company.

 
Now, the Ministry has clarified that in the aforesaid scenario, certain procedures needs to be followed keeping in view the requirements for statutory compliances by such companies under the Companies Act, 2013 and to enable compliance of such requirements by such Resolution Professionals.
 
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SEBI Board Meeting – 17 February 2020

The SEBI Board met on 17 February 2020 and took the decisions w.r.t. the following:

• Regulatory Sandbox Framework;

• SEBI (Investment Advisers) Regulations, 2013;

• Amendments to SEBI (Infrastructure Investment Trusts) Regulations, 2014 and the SEBI (Real Estate Investment Trusts) Regulations, 2014;

• Amendments to SEBI (Mutual Funds) Regulations, 1996;

• Amendments to SEBI (Depositories and Participants) Regulations, 2018 to enable re-pledge of securities pledged in dematerialized form;

• Budget Estimates for the Financial Year 2020-21. 

For more information, click here.