MCA vide its General Circular No. 08/2017 dated July 25, 2017 has issued a clarification regarding applicability of exemptions provided to private companies. Till now MCA has issued two notifications viz., Notification No. GSR 464(E) dated June 05, 2015and Notification No. GSR 583(E) dated June 13, 2017 providing various exemptions to the private companies. Some of the major exemptions are as follows: Read more
By Vijaylakshmi Agarwal & Kanishka Jain, (firstname.lastname@example.org)
Presently, the accounting treatment for securitization transaction is unclear and ambiguous despite a clear convergence with IFRS. The accounting principle for securitization was contained in AS 30 (based on IAS 39). The ICAI had originally promulgated AS 30 (based on IAS 39) in the year 2009, but was kept in abeyance, and subsequently repealed, while IND AS 109 is applicable from the year 2018. Therefore currently, there is no standard as such dealing with securitization for such companies on which IFRS is not applicable. Therefore for the interim period i.e. from 2015 to 2018, there are no standards governing the accounting for securitization in existence. Read more
Several entities will be required to comply with Indian Accounting Standards (IND-AS) w.e.f. 1st April, 2017 with the comparatives for the periods ending on 31st March, 2017, or thereafter.
Accordingly, the related party transactions will also be governed by IND-AS 24. Therefore, it is extremely essential to update the list of related parties in terms of the expansive definition under IND- AS 24 as well as take stock of transactions undertaken with each of these entities in the immediately preceding financial year to get a sense of the nature of transactions in terms of frequency, volume, value and terms of such transactions. Listing of related party transactions as per the expanded ambit of the term will be relevant, for comparison purposes, even for last financial year, that is, 2016-17 as the comparative for the previous period will also be provided. The disclosures from directors and KMP will have to provide list of relatives considering the definition under Act, 2013 as well as definition of close members of the family of such director/ KMP and accordingly details of enterprises where such close members exercise control or significant influence.
Intent of Consolidation
Consolidation is a combined representation of financials of a company and its subsidiaries, joint ventures and associates. Consolidated Financial Statements (‘CFS’) reflect the aggregate wealth of the holding company. Section 129(3) of the Act, 2013 mandates the preparation of CFS in addition to Standalone Financial Statements (‘SFS’), in case where the company has one or more subsidiaries.
In case of a not-for-profit organization, the need for consolidation does not arise. However, when such organization is registered under Section 8 of the Companies Act, 2013 (‘Act’), and by virtue of an interest in it by some company, the organization becomes a subsidiary of the other company, the question of consolidation arises. With the help of this article, we try and analyze the matter in question.
Reserve Bank of India (“RBI”) on 8th November, 2016, has took a very bold move towards the currency market of India. Ministry of Finance (“MoF”) with effect from 9th November, 2016, has brought a serious revolution in the economy of the country by withdrawing Rs. 500 and Rs. 1000 as a legal tender. Due to this, people as well as corporates and Financial Institutions all over the country faced a serious glitch towards monetary transactions.
Further, MoF by its subsequent circulars brought stringent norms towards the monetary market. Several restrictions were imposed on cash and electronic transactions to curb the black market. Read more
Background Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (‘Principal Rules’) was brought by MCA on 5th September, 2016 wherein it laid down inter alia the detailed procedure to transfer the shares to the IEPF Authority. The detailed procedure provided in the Principal Rules had technical as well as practical […]