Ministry of Corporate Affairs has issued much awaited notifications dated 30th March 2016 relating to CARO 2016, AS, Ind AS etc.
- The Companies (Auditors Report) Order, 2016
The MCA has issued the revised CARO in supersession of the Companies (Auditor’s Report) Order, 2015. This order applies for the financial years commencing on or after 1 April, 2015. The Order will not apply to the auditor’s report on CFS. - The Companies (Indian Accounting Standards) (Amendment) Rules, 2016
The MCA has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. Among other matters, the rules contain Ind AS roadmap for NBFCs. The rules have also notified Ind AS 11, Construction Contracts and Ind AS 18, Revenues and omitted Ind AS 115, Revenue from Contracts with Customers. The rules have also amended following standards:
· Ind AS 101: First time adoption of Indian Accounting Standards
· Ind AS 103: Business Combinations
· Ind AS 104: Insurance Contracts
· Ind AS 105: Non-current Assets Held for Sale and Discontinued Operations
· Ind AS 107: Financial Instruments: Disclosures
· Ind AS 109: Financial Instruments
· Ind AS 110: Consolidated Financial Statements
· Ind AS 112: Disclosure of Interests in Other entities
· Ind AS 1: Presentation of Financial Statements
· Ind AS 2: Inventories
· Ind AS 19: Employee Benefits
· Ind AS 23: Borrowing Costs
· Ind AS 28: Investments in Associates and Joint ventures
· Ind AS 32: Financial Instruments: Presentation
· Ind AS 34: interim Financial Statements
· Ind AS 36: Impairment of Assets
· Ind AS 37: Provisions, Contingent Liabilities and Contingent Assets
· Ind AS 38: Intangible Assets
· Ind AS 40: Investment Property
These amendment rules will come into force on the date of their publication in the Official Gazette. - The Companies (Accounting Standards) Amendment Rules, 2016
The MCA has issued Companies (Accounting Standards) Amendment Rules, 2016. This rules include the following accounting standards:
· Accounting standard 2: Valuation of Inventories
· Accounting standard 4: Contingencies and Event Occurring After Balance Sheet Date
· Accounting standard 10: Property, Plant and Equipment
· Accounting standard 13: Accounting for investments
· Accounting standard 14: Accounting for Amalgamations
· Accounting standard 21: Consolidated Financial Statements
· Accounting standard 29: Provisions, Contingent Liabilities and Contingent Assets
Accounting Standard 6, Depreciation Accounting, is omitted. This rule will come into force on the date of their publication in the Official Gazette. - The Companies (Removal of Difficulties) Order, 2016
In accordance with section 143(11) of the 2013 Act, the Central Government may, in consultation with the NFRA, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor’s report will also include a statement on such matters as may be specified therein. The Order clarifies that until NFRA is constituted, consultation will be held with the Committee chaired by an officer of the rank of Joint secretary or equivalent in the MCA. - The Companies (Removal of Difficulties) Second Order, 2016
To remove difficulties, in implementation of the Accounting Standards u/s 133, MCA has stated that until the NFRA is constituted, the Central Government may prescribe the standards of accounting of any, addendum thereto as recommended by the ICAI with and after examination or the recommendations made by the NACAS constituted under section 210A of the Companies Act, 1956.