Monthly GAAP Bulletin – September 2020

We are pleased to present the latest edition of the Monthly GAAP Bulletin that summarises significant accounting, auditing and regulatory updates. This publication has been compiled to meet the needs of dynamic Indian businesses and focuses on key developments in India and across the globe.

This edition covers updates for the month of August 2020.

We hope you find this bulletin informative and useful.

Quick snapshot of some key updates

India updates – Effective

Accounting updates

• Revised conceptual framework for financial reporting under Ind AS
• Revised compendium of Ind AS for the financial periods beginning on or after 1 April 2020

Auditing updates

• ICAI publication on Review Engagements on interim financial information in the current working environment due to COVID-19

Regulatory updates

Companies Act updates

• ICAI Publication on ‘Relaxations from regulatory compliances due to COVID-19 pandemic’
• Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020, and amendment to Schedule VII of the 2013 Act for inclusion of research and development activity of new vaccine, drugs and medical devices related to COVID-19 for FY21 to FY 23 as permissible CSR activity.

Other regulatory updates

• Resolution framework announced by RBI for COVID-19 related stress
• Restructuring of advances and clarification on new definition of Micro, small and medium enterprises (MSME)
• Revised guidelines for Core Investment Companies (CICs)
• Revised Guidance Note on Report under Section 92E of the Income-Tax Act, 1961

India updates – Proposed

Regulatory update

• Report of Committee on proposed ‘Business Responsibility and Sustainability Report’ (BRSR)
• Consultation paper on recalibration of threshold for minimum public shareholding norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases

International updates – Effective

US GAAP update

• ASU 2020:06 - Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

International updates – Proposed

US GAAP update

• Proposed ASU: Compensation-Stock Compensation (Topic 718): Determining the Current Price of an Underlying Share for Equity-Classified Share- Option Awards

Auditing update

• Exposure draft of "Proposed Statement on Auditing standard" (USGAAS) based on revised ISA 315, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement.