Daily Updates and News

MCA

Ministry of Corporate Affairs has notified the Companies (Accounting Standards) Amendment Rules, 2016. The Ministry has amended the definitions of Accounting Standards, Act, Financial Statements and enterprise. AS -2: Valuation of Inventories, AS-10: Property, Plant and Equipment, AS- 13: Accounting for Investments, AS-14: Accounting for Amalgamations, AS-21: Consolidated Financial Statements, AS-29 Provisions, Contingent Liabilities and Contingent Assets also stand amended. Also, under the heading ‘Accounting Standards’, under the subheading “General Instructions”, the following paragraph shall be inserted namely: The reference to ‘Schedule VI’ or ‘Companies Act, 1956’ shall mutatis mutandis mean ‘Schedule III’ and ‘Companies Act, 2013’, respectively. The amendment shall come into force on the date of their publication in the Official Gazette.

MCA

Ministry of Corporate Affairs has issued Companies(Removal of Difficulties) Order, 2016 has amended Section 143 of Companies Act, 2013 which provides for powers and duties of auditors and auditing standards. The Ministry has inserted a proviso in Sub-section (11) of Section 143 which provides that till the time National Financial Reporting Authority is constituted u/s 132, the Central Government may hold consultation required under this subsection with the Committee chaired by an officer of the rank of Joint Secretary or equivalent in the MCA. The Committee shall include representatives from the ICAI and Industry Chambers and special invitees from National Advisory Committee on Accounting Standards and office of CAG. The order shall deemed to have come into force from 10^th April, 2015.

Thanks & Regards,

Meetesh Shiroya