The weekly messenger | Edition 16.17
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting News
ED of Clarifications to Ind AS 115, Revenue from Contracts with Customers – 26 April 2017
The Institute of Chartered Accountants of India (ICAI) has issued an Exposure Draft (ED) on Indian Accounting Standard (Ind AS) 115, Revenue from contract with customers pursuant to clarificatory amendments issued by International Accounting Standards Board (IASB) in order to maintain consistency with International Financial Reporting Standards (IFRS) 15 wherein certain modifications and transitions provisions have been incorporated.
Public comments are to be received by 16 May 2017.
For more information, click here
ED of Amendments to Ind AS 101, First Time Adoption of Ind AS – 27 April 2017
ICAI has issued an ED on Ind AS 101, ‘First time adoption of Ind AS’, wherein certain modifications in para D7AA pertaining to deemed cost exemption wrt cost of Property, Plant and Equipment (PP&E) have been incorporated which are as follows:
Earlier, it was specifically mentioned in the Ind AS that ‘if an entity avails the option under this paragraph, no further adjustments to the deemed cost of the PP&E so determined in the opening balance sheet shall be made for transition adjustments that might arise from the application of other Ind ASs’. However, now, in order to allow the consequential changes arising on the application of other Ind AS to be adjusted from the deemed cost of PP&E, the above mentioned line has been deleted .
These amendments would become applicable for annual periods beginning on or after 01 April, 2017.
Public comments are to be received by 19 May 2017.
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Auditing News
AICPA issues TQAs on internal controls – 29 April 2017
AICPA has issued new Technical Questions and Answers (TQAs) in order to provide non-authoritative guidance in the area of internal control.
For TQAs, click here
Regulatory News
Withdrawal of FAQs on the Revised Schedule VI to the Companies Act, 1956 – 25-04-2017
ICAI has withdrawn FAQs on Revised Schedule VI to the Companies Act, 1956 issued in May 2012 in view of the issuance of Schedule III to the Companies Act, 2013 applicable to companies w.e.f 01 April 2014.
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FAQ on GST – 25 April 2017
The Central Board of Excise and Customs issued FAQs based on Model Goods and Service Tax (GST) law providing more clarification on the entire GST law.
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Insurance Ombudsman Rules, 2017 – 25 April 2017
In exercise of powers conferred by Section 24 of IRDA Act, 1999 and in supersession of the Redressal of Public Grievances Rules, 1998, the Central Government has notified Insurance Ombudsman Rules, 2017 which shall be effective from 25 April 2017. The objective of these rules is to resolve all complaints of all personal lines of insurance, group insurance policies, policies issued to sole proprietorship and micro enterprises on the part of insurance companies and their agent and intermediaries in a cost effective and impartial manner.
These rules shall apply to all insurers and their agents and intermediaries in respect of complaints of all personal lines of insurance, group insurance policies, policies issued to sole proprietorship and micro enterprises.
For more information, click here
RBI proposes fresh Regulations under FEMA, 1999 for Cross Border Mergers – 26 April 2017
The Reserve bank of India (RBI) has proposed the regulations under Foreign Exchange Management Act, 1999 (FEMA) for Cross Border Mergers pursuant to the rules notified by the Ministry of Corporate Affairs (MCA) through Companies (Compromises, Arrangements and Amalgamation) Amendment Rules, 2017 issued on 13 April 2017. The purpose of these regulations is to address those issues which may arise when an Indian company and a foreign company enter into Scheme of merger, demerger, amalgamation, or rearrangement.
Public comments are to be received by 09 May 2017.
For more information, click here
Transfer of shares to IEPF Authority – 27 April 2017
On 28 February 2017, MCA had provided clarification that if the period of seven years for the purpose of transfer of shares on which the dividend is unpaid under section 124 (5) is completed during 7 September 2016 to 31 May 2017, then the due date for the purpose of transfer of such shares by companies would be 31 May 2017.
Now, MCA has issued a circular wherein it has clarified that it has decided to open a special demat account with National Securities Depository Limited (NSDL) for the purpose of transfer of the above mentioned shares and has also prescribed the format for providing the information of the shareholders whose shares are being transferred to Investor Education and Protection Fund’s (IEPF) demat account to NSDL.
For more information, click here
Commencement of Real Estate Act – 30 April 2017
Regulations of Real Estate (Regulation & Development) Act, 2016 has become applicable from 1 May 2017. Together with other regulations, it requires all the developers to get their ongoing projects that have not yet received Completion Certificate and the new projects to be registered with Regulatory Authorities within three months i.e. by July end.
For more information, click here