The weekly messenger | Edition 10.19

Accounting News

ED of Definition of Business (Amendments to Ind AS 103) – 27 February 2019

The Institute of Chartered Accountants of India (ICAI) has issued Exposure Draft (ED) of the amendments to Indian Accounting Standard (Ind AS) 103 ‘Business Combinations’, in order to clarify the definition of ‘Business’ to assist the entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. This amendment has been suggested based on the recent amendments to IFRS 3 ‘Business Combinations’.
 
Comments are to be provided by 6 April 2019.
 
For more information, click here.
 

ED of Definition of Material (Amendments to Ind AS 1 and Ind AS 8) – 27 February 2019

The ICAI has also issued the ED of the Amendments to Ind AS 1, ‘Presentation of Indian Accounting Standards’ and Ind AS 8, ‘Accounting Policies, Change in Accounting Estimates and Errors’, wherein the ICAI proposes refinements to the definition of ‘material’ and aligns this definition with other Ind AS. These refinements are expected to make the definition easier to understand and are not intended to alter the concept of materiality in Ind AS. These amendments have been suggested based on the recent amendments to respective IASs.
 
Comments are to be provided by 6 April 2019.
 
For more information, click here.

The ICAI has issued an ED of the Revised Guidance Note (GN) on ‘Accounting for Political Parties’, thereby incorporating the improvements and changes in the operating environment that have taken place, since the issue of the last edition of the GN, which was issued in 2012.
 
Comments are to be provided by 6 April 2019.
 
For more information, click here.    

ICWAI releases CAS- 4 (Revised 2018) applicable from 1 March 2019 – 28 February 2019

The Institute of Cost Accountants of India (earlier known as ICWAI) has issued the Cost Accounting Standard (CAS) – 4 (Revised 2018), ‘Cost of production / acquisition / supply of goods / provision of services’ which deals with the determination of cost of production or acquisition or supply of goods or provision of services or both. This standard replaces CAS – 4 on Cost of Production for Captive Consumption issued earlier.
 
For more information, click here.

Auditing News

ED on Standards on Internal Audit – 27 February 2019
 
The Internal Audit Standards Board of the ICAI has issued the EDs of the following Standards on Internal Audit (SIA):

• SIA 110, ‘Nature of Assurance’;
• SIA 230, ‘Objectives of Internal Audit’;
• SIA 240, ‘Using the Work of an Expert’;
• SIA 360, ‘Communication with Management’; and
• SIA 370, ‘Reporting Results to Management’. 

Comments are to be provided by 28 March 2019.
 
For ED on:
SIA 110, click here;
SIA 230, click here;
SIA 240, click here;
SIA 360, click here; and
SIA 370, click here.     

Regulatory News

GN on Compilation Engagements by a Cost Accountant – 28 February 2019

The Cost Accounting Standards Board (CASB) of the Institute of Cost Accountants of India has issued the ‘GN on the Compilation Engagements by a Cost Accountants’ in order to provide guidance on the cost accountant’s professional responsibilities to compile cost statements and the form and content of the report, the cost accountant issues in connection with such compilation engagements.
 
For more information, click here.

The Central Government (CG) has notified the following persons who may file an application for initiating corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBBC), 2016 against a corporate debtor before the Adjudicating Authority, on behalf of the financial creditor:

• a guardian;
• an executor or administrator of an estate of a financial creditor; 
• a trustee (including a debenture trustee); and
• a person duly authorised by the Board of Directors of a Company.

For more information, click here.  
 

SEBI Board Meeting – 1 March 2019

The Securities and Exchange Board of India (SEBI), took the following decisions in its Board Meeting held on 1 March 2019:

• Amendments to SEBI (Infrastructure Investment Trusts) Regulations, 2014 and the SEBI (Real Estate Investment Trusts) Regulations, 2014;
• Framework for Innovators Growth Platform;
• Corporate Debt Restructuring;
• Valuation of money market and debt securities by Mutual Funds;
• Participation of Institutional Investors in Commodity Derivatives Markets in India;
• Amendments to SEBI (Debenture Trustee) Regulations, 1993, SEBI (Issue and   Listing   of   Debt   Securities) Regulations, 2008 and SEBI (Listing Obligations and Disclosure Requirements) (LODR), 2015;
• Permitting permanent registration to Custodians; and
• Revision of SEBI’s fee structure.

For more information, click here.