The weekly messenger | Edition 25.19
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
FASB moves towards approving accounting relief for contract modifications arising from reference rate reform – 19 June 2019
The Financial Accounting Standards Board (FASB) took a major step towards approving accounting relief for companies and organizations required to modify contracts as a result of new global reference rates, wherein the FASB has tentatively decided that for a contract that meets certain criteria, a change in that contract’s reference interest rate would be accounted for as a continuation of that contract rather than the creation of a new contract. This decision applies to loans, debt, leases, and other arrangements.
For more information, click here.
Regulatory News
ESI Contribution reduced from 6.5% to 4% – 13 June 2019
The Government of India has reduced the rate of ESI contribution under the Employees’ State Insurance (ESI) Act from 6.5% to 4%, wherein employer’s contribution has been reduced from 4.75% to 3.25% and employee’s contribution from 1.75% to 0.75% respectively.
The Revised Rates will become effective from 1 July 2019.
For more information, click here.