Voices on Reporting : January 2016

Voices on Reporting : January 2016

In this month’s call, we aim to cover following topics: Overview of Ind AS 21, The Effects of Changes in Foreign Exchange Rates and Key regulatory updates.

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In this month’s call, we aim to cover following topics: 

  • Overview of Ind AS 21, The Effects of Changes in Foreign Exchange Rates
  • Key regulatory updates.

Ind AS 21, The Effects of Changes in Foreign Exchange Rates

An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of this standard is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.

The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements.

On the call, we will examine the key requirements of the Ind AS 21 along with practical insights into some of the implementation issues when transitioning from current Indian GAAP.

Key regulatory updates

  • Ministry of Corporate Affairs (MCA) notifies materiality levels for reporting of frauds by auditors to central government and relaxes procedure for related party transactions

The MCA on 14 December 2015 notified Section 13 on reporting of offences involving fraud to the central government and Section 14 on omnibus approval for related party transactions of the Companies (Amendment) Act, 2015. The notification is effective from 15 December 2015. Further, the MCA through its notification dated 14 December 2015 also amended/inserted certain rules to the notified sections.

  • Securities and Exchange Board of India (SEBI) issues the Frequently Asked Question (FAQs) on the SEBI Listing Regulations, 2015

The SEBI on 2 September 2015 notified the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). The Listing Regulations are applicable from 1 December 2015 (subject to a few exceptions). SEBI has recently issued the FAQs on certain provisions of the Listing Regulations. The FAQs provide guidance/clarifications on certain issues raised by stakeholders.

On the call, we will provide an overview on these key regulatory updates.  

Downloads:

Slide deck - January 2016 (PDF, 453 KB)  

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