CA Exam

Topics: Balance sheet, Asset, Generally Accepted Accounting Principles Pages: 147 (14913 words) Published: October 13, 2013
PAPER – 1 : FINANCIAL REPORTING
PART – I : RELEVANT AMENDMENTS, NOTIFICATIONS AND ANNOUNCEMENTS A.

Applicable for November, 2013 examination

(i)

Securities and Exchange Board of India Mutual Funds (Amendment) Regulations, 2013
In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board vide notification No. LAD-NRO/GN/201314/03/5652 dated April 16, 2013 had made amendment to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These Regulations may be called as the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2013. The SEBI (Mutual Funds) (Amendment) Regulations, 2013 can be downloaded from the link http://www.sebi.gov.in/cms/sebi_data/attachdocs/1366172455558.pdf

(ii) Securities and Exchange Board of India (Stock Brokers And Sub-Brokers) (Amendment) Regulations, 2013
In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board vide notification No. LAD-NRO/GN/201314/01/8129 dated April 5, 2013 had made amendment to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These Regulations may be called as the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2013. The SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2013 can be downloaded from the link http://www.sebi.gov.in/cms/sebi_data/attachdocs/1365161667044.pdf (iii) Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA)

In the Revised Schedule VI format, no line item has been specified for the presentation of “Foreign Currency Monetary Item Translation Difference Account (FCMITDA)”. Therefore, the Council of the Institute at its 324th meeting held on March 24-26, 2013 at New Delhi, decided that debit or credit balance in FCMITDA should be shown on the “Equity and Liabilities” side of the balance sheet under the head ‘Reserves and Surplus’ as a separate line item.

(iv) Criteria for Classification of Entities and Applicability of Accounting Standards Due to recent changes in the enhancement of tax audit limit, the Council of the ICAI has recently decided to change the 1st criteria of Level II Non-Corporate Entities i.e. determination of SME on turnover basis from ` 40 lakhs to ` 1 Crore vide announcement “Revision in the Criteria for classifying Level II Non-Corporate Entities” issued by ICAI on 7th March, 2013. This revision is applicable with effect from the accounting year commencing on or after April 1, 2012.

© The Institute of Chartered Accountants of India

2

FINAL EXAMINATION: NOVEMBER, 2013

(v) Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Equity Listing Agreement SEBI has noticed that some listed entities have been framing their own employees benefit schemes wherein Trusts have been set up to deal in their own securities in the secondary market. It is apprehended that some entities may frame such schemes with the purpose of dealing in its own securities with the object of inflating, depressing, maintaining or causing fluctuation in the price of the securities by engaging in fraudulent and unfair trade practices.

In order to address the concerns over acquisition of shares by employee welfare Trusts from the secondary market, it has been decided to prohibit the listed entities from framing any employee benefit schemes involving acquisition of own securities from the secondary market. To implement this decision, some amendments (applicable with immediate effect) are being made in the SEBI (ESOS and ESPS) Guidelines 1999 and Equity Listing Agreement vide circular no CIR/CFD/DIL/3/2013 dated January 17, 2013. Equity Listing Agreement

Certain listing conditions are hereby specified by way of inserting Clause 35C in the Equity Listing Agreement as given below:
“(i) The...
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