ArticlePost-Budget Article: Impact on the Automotive Sector
The forward-looking approach adopted in the budget towards this sector has been in alignment with the government’s goals of promoting Aatmanirbhar Bharat and moving firmly towards net-zero carbon emissions by 2070, shares Saket Mehra in this insightful article in Financial Express.
The Reserve Bank of India has issued notification that mandates the RBIA Framework for non-banking financial companies (NBFCs) and primary (urban) co-operative banks. Find this and more in our latest edition of monthly GAAP bulletin.
India Updates – Effective
Educational material on Ind AS 105, Non current Assets Held for Sale and Discontinued Operations
The Institute of Chartered Accountants of India (ICAI) has issued Educational Material on Ind AS 105, Non Current Assets Held for Sale and Discontinued Operations, which addresses certain relevant aspects envisaged in Ind AS 105 by way of brief summary of the standard and frequently asked questions that are being/expected to be encountered while implementing Ind AS 105. Click here for announcement.
Guidance note on accrual basis of accounting
The ICAI has issued revised edition of guidance note on accrual basis of accounting (originally issued in the year 1988). The guidance note explains the fundamental concept of accrual accounting and the process of transition from cash basis to accrual basis of accounting. Click here to read the guidance note.
Risk based internal audit for banks and NBFCs
The Reserve Bank of India (RBI) had issued risk based internal audit (RBIA framework) mandated for all scheduled commercial banks except regional rural banks. Now, the RBI has issued notification dated 3 February 2021 which mandates the RBIA Framework for the following non-banking financial companies (NBFCs) and primary (urban) Co-operative banks (UCBs):
a. All deposit taking NBFCs, irrespective of their size;
b. All non deposit taking NBFCs (including core investment companies) with asset size of 5,000 crore and above; and
c. All UCBs with asset size of 500 crore and above.
Such entities are required to implement the RBIA Framework by 31 March 2022.
The ICAI has issued guidance note on audit of banks (2021 edition) for statutory audit of banks/bank branches for the year ended 31 March 2021. The Guidance Note is bifurcated into following two sections:
Section A: Statutory Central Audit
Section B: Bank Branch Audit
The Guidance Note also contains illustrative formats of engagement letter, auditor’s report, management representation letter and texts of relevant master directions and circulars issued by the RBI.
Accounting Standards Board of the ICAI has issued several exposure drafts of amendments to certain Ind AS for comments, which considers amendments made in corresponding IFRS Standards issued by the
International Accounting Standards Board (IASB). Click here for the ICAI announcement
Exposure draft on standard for audit of smaller and less complex entities
Auditing and Assurance Standards Board (AASB) of the ICAI has issued exposure d raft on standard for audit of smaller and less complex entities for comments. Click here for the exposure draft
Consultation paper on review of regulatory provisions related to independent directors
With a view to further strengthen the independence of Independent Directors and enhance their effectiveness in the protection of interests of minority shareholders and performing other functions, SEBI has issued a consultation paper on review of regulatory p rovisions related to independent directors (consultation paper) for public comments. Click here for the consultation paper
International updates - Effective
Amendments to IAS 1, Presentation of Financial Statements, and IFRS Practice Statement 2, Making Materiality Judgements, and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors
International updates – Proposed
Amendments to IFRS 16, Leases: COVID-19-Related Rent Concessions beyond 30 June 2021
Exposure draft on proposed quality management standards
Exposure draft on Proposed Statement on Auditing Standards, Inquiries of the Predecessor Auditor Regarding Fraud and Non-compliance with Laws and Regulations