The weekly messenger | Edition 35.17
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
Proposed 2018 US GAAP Financial Reporting Taxonomy & Shared Reporting Taxonomy Available for Public Review & Comments - 5 September 2017
The Financial Accounting Standards Board has released the proposed 2018 US Generally Accepted Accounting Principles (GAAP) Financial Reporting Taxonomy and the proposed 2018 Shared Reporting Taxonomy for public review and comment. The proposed US GAAP taxonomy contains updates for accounting standards and other recommended improvements. The proposed Shared Reporting Taxonomy contains elements of the GAAP taxonomy needed by International Financial Reporting Standards filers for U.S. Securities and Exchange Commission-specific disclosure requirements eliminating the need for those filters to import the GAAP taxonomy.
Comments are to be received by 31 October 2017.
For US GAAP Financial Reporting Taxonomy, click here;
For Proposed Shared Reporting Taxonomy, click here.
Auditing News
COSO issues important update to ERM Framework- 6 September 2017
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released an updated risk framework that highlights the importance of enterprise risk management’s (ERM’s) role in strategic planning. The updated framework focuses on challenges and evolving expectations of ERM that business leaders deal with today when making decisions, from fast-changing technology to shifts in economic markets to changing demographics.
For more information, click here.
Regulatory News
Exemption to Unlisted Public Companies under the Companies (Appointment and Qualification of Directors) Rules, 2014 from the appointment of Independent Directors – 5 September 2017
The Ministry of Corporate Affairs (MCA) had added a new sub-Rule (2) to Rule 4 “Number of Independent Directors” of the Companies (Appointment and Qualification of Directors) Rules, 2014 vide Notification no. G.S.R. 839(E) dated 5 July 2017, wherein the following classes of unlisted public companies had been given exemptions w.r.t. the appointment of independent directors:
- a joint venture;
- a wholly owned subsidiary; and
- a dormant company as defined under section 455 of the Act.
On this various stakeholders have sought clarification w.r.t. the meaning of joint venture for the purpose of availing exemption given under sub-rule (2) of the aforesaid Rules, as such term is not defined in the Companies Act, 2013.So, MCA has clarifiedthat “joint venture” would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have rights to the net assets of the arrangement.
For more information, click here.
Acquisition of “control” under the SEBI (Substantial Acquisition of shares and Takeovers) Regulations, 2011- 8 September 2017
The Securities and Exchange Board of India (SEBI) has issued a press release under which it has clarified that any change or dilution in the definition of control would have far reaching consequences since a similar definition of 'control' is used in the Companies Act, 2013 and other laws. Therefore, it has been decided to continue with the practice of ascertaining acquisition of ‘control’ as per the extant definition in the Takeover Regulations.
For more information, click here.
Vigilance Manual 2017 - 8 September 2017
The Central Vigilance Commission has issued a Vigilance Manual 2017 which contains the circulars, guidelines which have been issued since the release of its last edition. It also contains special chapters on Public Sector Enterprises, Banking & Insurance Companies and several guidelines issued by the Chief Technical Examiners’ office and separate chapters on CBI, PIDPI Resolution, Preventive Vigilance, Disciplinary Proceedings & Suspension and some other relevant issues.
For more information, click here.
Further GST Updates
The Central Board of Excise and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows:
- For extension of the due dates for furnishing details/ returns for the month of July & August, 2017, click here.