The weekly messenger | Edition 29.18
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
IFRS convergence status-16 July 2018
The Institute of Chartered Accountants of India (ICAI) has published the convergence status of International Financial Reporting Standards (IFRS) as on 16 July 2018 which is as follows:
Amendments issued by IASB | Effective Date Internationally | Tentative Effective Date in India | Status of corresponding amendments/formulation of Ind AS | Remarks | ||
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| Cleared by ASB | Cleared by Council | Cleared by NACAS |
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IFRS 16, Leases | 1 January 2019 | 1 April 2019 | Yes | Yes | Yes | Ind AS 116, Leases will be submitted to MCA shortly for notification. |
IFRS 17, Insurance Contracts | 1 January 2021 | 1 April 2020 | Yes |
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| Internationally IFRS 17 is effective from January 1, 2021. However, in view of implementation of Ind AS in Insurance Sector from 2020-21, it is proposed to implement Ind AS 117, Insurance Contracts early. |
IFRIC 23 Uncertainty over Income Tax Treatments | 1 January 2019 | 1 April 2019 | Yes | Yes | Yes | Appendix C to IAS 12, Income Taxes will be submitted to MCA shortly for notification. |
Amendments to IAS 28 Investments to Associates and Joint Ventures | 1 January 2019 | 1 April 2019 | Yes |
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Amendments to IFRS 9 Financial Instruments | 1 January 2019 | 1 April 2019 | Yes |
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Annual Improvements to IFRS Standards 2015-17 Cycle
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Amendments to IAS 19, Employee Benefits | 1 January 2019 | 1 April 2019 | Yes |
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Amendments in Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance | Already implemented in IAS 20 | 1 April 2018 | Yes | Yes | Yes | Draft amendments have been sent to MCA for notification. Under these amendments, the option for presentation of grants related to assets and recording of nonmonetary grants are reinstated in Ind AS 20 in order to align with IAS 20. |
For more information, click here.
FASB issues Codification improvements in various standards- 16 July 2018
The Financial Accounting Standard Board (FASB) has recently issued an Accounting Standard Update (ASU) wherein the Board has made certain improvements in various standards. The purpose of issuing these improvements is to provide clarifications, correct errors in, or make minor improvements to the Codification. The amendments would affect the following topics:
- Subtopic 220-10, Income Statement-Reporting Comprehensive Income-Overall;
- Subtopic 470-50, Debt-Modifications and Extinguishments;
- Subtopic 480-10, Distinguishing Liabilities from Equity-Overall;
- Subtopic 718-740, Compensation-Stock Compensation-Income Taxes;
- Subtopic 805-740, Business Combinations-Income Taxes;
- Subtopic 815-10, Derivatives and Hedging- Overall;
- Subtopic 820-10, Fair Value Measurement- Overall;
- Subtopic 940-405, Financial Services-Brokers and Dealers-Liabilities; and
- Subtopic 962-325, Plan Accounting-Defined Contribution Pension Plans-Investments-Other.
For more information, click here.
FASB issues Codification improvements to Topic 842, Leases – 18 July 2018
The FASB has issued an ASU on Leases (Topic 842), in order to increase the transparency and comparability among organisations about by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The amendments in this Update affect narrow aspects of the guidance issued in the amendments in Update 2016-02. The issues addressed in the amendments relates to the following areas:
- Residual Value Guarantees;
- Rate Implicit in the Lease;
- Lessee Reassessment of Lease Classification;
- Lessor Reassessment of Lease Term and Purchase Option;
- Variable Lease Payments that depend on an Index or a Rate;
- Investment Tax Credits; etc.
For more information, click here.
Regulatory News
Amendments in Form 3CD – 20 July 2018
The Central Board of Direct Taxes (CBDT) vide its notification no. G.S.R. 666(E) dated 20 July 2018 has recently amended the Form 3CD by issuing the Income-tax (Eighth Amendment) Rules, 2018. These amendment rules have amended and/or inserted certain new clauses including following matters:
- Goods and Services Tax (GST);
- Income chargeable under the head ‘Income from Other Sources’;
- Primary Adjustments to Transfer Price;
- Details of impermissible avoidance agreement;
- Receipt/Payment exceeding the limit specified u/s 269ST;
- Unreported tax deducted/collected at source;
- Details of dividends received;
For more information, click here.
CASB issues advisory on filing of the cost audit report for the year 2017-18 – 17 July 2018
The Cost Accounting Standards Board (CASB) has issued an advisory on filing of the cost audit report for the F.Y. 2017-18 in view of implementation of GST. The purpose of issuing this advisory is to provide clarification w.r.t. the filing of the cost audit report by different class of companies i.e. the companies which are producing products covered under excise duty even after 1 July 2017 and the companies whose products or services are covered under GST regime.
For more information, click here.
Further GST Updates
The Central Board of Indirect Taxes and Customs has issued certain updates w.r.t. GST whose links are as follows:
- For information w.r.t. third refund fortnight to clear pending refunds, click here;
- For information w.r.t. nodal officers nominated for implementation of e-way bill system, click here;
- For information w.r.t. GST council recommendations for reduction in GST rates on several goods and for specified handicraft items, click here;
- For information w.r.t. GST rate on services, click here;
- For information w.r.t. approval of simplified GST returns, click here;
- For information w.r.t. recommendations on opening of migration window for tax payers till 31 August 2018, click here; and
For information w.r.t. recommendations made during the 28th meeting of the GST Council held in New Delhi on 21st 2018, click here.