On 24 July 2014, the International Accounting Standards Board (IASB) issued the completed version of IFRS 9, Financial Instruments (IFRS 9 (2014)), which substantially concluded the challenging project launched in 2008 to replace IAS 39, Financial Instruments: Recognition and Measurement.
IFRS 9 (2014) is a single and integrated standard. The IASB had divided the project to replace IAS 39 into three main phases namely a) Phase I: classification and measurement of financial assets and financial liabilities b) Phase II: impairment methodology, and c) Phase III: hedge accounting. To implement each of these phases, the IASB had issued various versions of IFRS 9 in 2009, 2010, and 2013. However, the final version i.e. IFRS 9 (2014) consolidates the previous three versions of IFRS 9 to replace IAS 39 in entirety. In our call we provided an overview on IFRS 9 (2014).
Recently on 14 August 2014, the Ministry of Corporate Affairs (MCA) has amended the Companies (Meetings of Board and its Powers) Rules, 2014 (Rules). The amended Rules have removed the paid- up share capital criterion and have revised transaction level thresholds i.e. included an absolute monetary limit for certain transactions, beyond which the related party transactions would require shareholders’ approval. We discussed the approval process for related party transactions under the Companies Act, 2013 and the SEBI guidelines and highlighted implementation challenges that corporate India is expected to face.
In our call we discussed the approval process for related party transactions under the Companies Act, 2013 and the SEBI guidelines and highlighted implementation challenges that corporate India is expected to face.
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