The weekly messenger | Edition 28.19

Accounting News

Education Material on Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ – 17 July 2019

The Ind AS Implementation Committee of the ICAI has issued an Educational Material on Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’. The purpose of issuing this material is to provide guidance by way of Frequently Asked Questions (FAQs) and illustrations explaining the principles enunciated in the Standard.
 
For more information, click here.

Ind AS: An Overview (Revised 2019) – 17 July 2019

The ICAI has also issued the fourth edition of its publication ‘Ind AS: An Overview (Revised 2019)’, which provides the overview of various aspects related to Ind AS such as roadmaps w.r.t. applicability of Ind AS, carve-outs from IFRS/IAS, changes in financial reporting under Ind AS compared to financial reporting under accounting standards, summary of all Ind ASs etc. In addition to this, the revised edition also covers the recent amendments being made to Ind AS, such as new leases standard i.e. Ind AS 116 ‘Leases’ and other consequential amendments.
 
For more information, click here.

IASB proposes amendments to accounting for deferred tax – 17 July 2019

The International Accounting Standards Board (IASB) has proposed certain amendments to accounting for deferred tax by issuing an ‘Exposure Draft – Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12)’ which aims at clarifying how companies account for deferred tax on leases and decommissioning obligations.
 
Comments are to be provided by 14 November 2019.
 
For more information, click here.

Regulatory News

ICSI to implement eCSIN and UDIN w.e.f. 1 October 2019– 10 July 2019

The ICSI had taken the following decisions in its meeting held on 27 June 2019:

• Implementation of eCSIN Guidelines – The ICSI’s Council has made quoting of Employee Company Secretary Identification Number (eCSIN) mandatory w.e.f. 1 October 2019 for every appointment/cessation of Company Secretary in terms of Section 2013 of the Companies Act, 2013 read with Rule 8/Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 ;
• Implementation of UDIN Guidelines – The Council has also made quoting of mandatory Unique Document Identification Number (UDIN) in the documents certified /verified/attested/signed/authenticated by a company secretary in practice for the professional services mentioned in the UDIN w.e.f. 1 October 2019.

For more information, click here.

Disclosure of divergence in the asset classification and provisioning by banks – 17 July 2019

The Securities and Exchange Board of India (SEBI) has revised the disclosure requirements for listed banks w.r.t. the divergence in provisioning of assets in order to make such requirements in line with the Reserve Bank of India’s (RBI’s) revised disclosure requirements. As per the revised requirements, the listed banks will have to disclose to the stock exchanges divergences in the asset classification and provisioning if  “the additional provisioning for non - performing assets assessed by the RBI exceeds 10 % of the reported profit before provisions and contingencies for the reference period” as against the erstwhile limit of 15%.
 
For more information, click here.

Consultative Paper on policy proposals w.r.t. resignation of Statutory Auditors from listed entities – 18 July 2019

The SEBI has issued a ‘Consultative Paper on policy proposals w.r.t. resignation of statutory auditors from listed entities’, wherein the SEBI has proposed certain changes in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 some of which are as follows:

• If the auditor has signed the audit report for all the quarters (limited review/ audit) of a financial year, except the last quarter, then the auditor shall finalise the audit report for the said financial year before such resignation;
• In all other cases, the auditor shall issue limited review/audit report for that quarter before such resignation (i.e.  previous quarter in reference to the date of resignation);
• With respect to the auditor of a material unlisted subsidiary of the listed entity, the auditor shall issue the limited review/audit report for that financial year/ quarter, as applicable, before such resignation (i.e.  previous financial year/quarter in reference to the date of resignation);
• If the reason for the auditor’s resignation is the entity not providing information, the auditor shall provide an appropriate disclaimer in the audit report to that extent;
• The auditor would be required to provide the details of his resignation in a prescribed format etc.

For more information, click here.

Standardising Reporting of violations related to Code of Conduct under SEBI (Prohibition of Insider Trading) Regulations, 2015 – 19 July 2019

Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, all listed companies, intermediaries and fiduciaries are required to formulate a code of conduct for designated persons as well as for their relatives and are required to inform SEBI about any violation of the aforesaid Code of Conduct. In compliance with the above requirement, SEBI has been receiving various references from listing companies regarding violation of the aforesaid code of conduct, wherein many of such references provide incomplete or inadequate details about the nature of violation, designation and functional role of designated persons who have committed the violation, frequency of such violations etc.
 
Therefore, in order to standardize the process relating to dealing with such violations of the Code of Conduct, the SEBI has issued a standardized format for the reporting of the above-mentioned violation.
 
For more information, click here.

SEBI issues revised formats for limited review/audit report of the listed entities – 19 July 2019

The SEBI vide its circular dated 29 March 2019, has issued the procedure and formats for limited review/audit report of the listed entity and those entities whose accounts are to be consolidated with the listed entity. Now, pursuant to the information received from the ICAI w.r.t.  its revised reporting standard SA 700, the SEBI has once again revised the audit report formats for the listed entities.
 
These revised formats would be applicable with respect to the financial results for the quarter ending 30 September 2019 and thereafter.
 
For more information, click here.