The weekly messenger | Edition 09.17
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting Updates
FASB updates EBP master trust presentation, disclosure requirements – 28 February 2017
The Financial Accounting Standard Board (FASB) has issued an Accounting Standard Update (ASU) on the employee benefit plan (EBP) master trust reporting. This update primarily relates to the reporting by an EBP for its interest in a master trust. The amendments in this update clarify the presentation requirements for a plan’s interest in a master and require more detailed disclosures of the plan’s interest in the master trust.
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Auditing News
Guidance note on Audit of Banks 2017– 27 February 2017
The Auditing and Assurance Standards Board (AASB) of the Institute of Chartered accountants of India (ICAI) has issued a Guidance Note (GN) on Audit of Banks 2017 edition .GN discusses in depth the various important items on the financial statements (FS) of banks, its peculiarities, manner of disclosure in FS, the Reserve Bank of India (RBI) prudential directions thereon, audit procedures, reporting on Long Form Audit Reports, Ghosh and Jilani Committee requirements, special purpose reports and certificates, etc. The purpose of updating this GN is to incorporate the updated guidance about the following:
- impact of the Master Directions and other relevant circulars issued by RBI in 2016,
- guidance on demonetization at appropriate places,
- relevant pronouncements of the ICAI having bearing on bank audits.
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Report on Audit Quality Review – 27 February 2017
The Quality Review Board of ICAI has issued the Report on Audit Quality Review for the audit assignments conducted between the periods 2012 to 2014. Quality review is a review which is directed towards evaluation of audit quality and adherence to various statutory and other regulatory requirements. It involves assessment of the work of auditors while carrying out their audit function so that Board is able to assess:
- the quality of audit and reporting by the Statutory Auditors; and
- the quality control framework adopted by the Statutory Auditors/ audit firms in conducting the audit.
This report includes the key findings, its analysis and summary of the observations made by the reviewers in the various review reports reviewed by them.
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Regulatory News
Companies (Transfer of Pending Proceedings) Amendment Rules, 2017 – 28 February 2017
Central Government (CG) has amended the Companies (Transfer of Pending Proceedings) Rules, 2016 by the Companies (Transfer of Pending Proceedings) Amendment Rules, 2017 in which the following change has been incorporated:
In rule 5, sub rule (1), which provides for transfer of pending proceedings of winding up on the grounds of inability to pay debt before a high court to the Bench of Tribunal, the timelines prescribed for the purpose of submission of information to the tribunal has been increased from sixty days to six months.
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IEPF (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 – 28 February 2017
CG has amended the Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 by the IEPF Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 in which certain procedural changes have been made with respect to the following topics:
- Definitions
- Fund
- Manner of transfer of shares to the fund
- Refunds to claimants from fund
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