Auditing Guidance by ICAI on “Subsequent Events – Key Audit Considerations amid COVID 19”

In the series of Auditing Guidance on COVID-19 issued by ICAI, latest is Auditing Guidance on “Subsequent Events– Key Audit Considerations amid COVID 19” issued by ICAI on 13th May 2020 for the benefits of its members.

Considering the uncertainties and challenges caused by COVID 19 pandemic and likelihood of unplanned events occurring at any time, entities are required to carefully evaluate the information that becomes available after the date of the financial statements but before the issuance of the financial statements. Auditors are also required to have greater focus on events occurring between the date of the financial statements and the date of the auditor’s report (i.e., subsequent events) and the effect, if any, of such on the entity’s financial statements.

For details, please refer the attached document; ICAI Guidance on Subsequent events amid Covid 19

Disclaimer:-

The information contained herein is in summary form of Issued by Auditing and Assurance Standards Board of ICAI and is based on information available in public domain. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Posted in Audit & Assurance |

Brief Note On Recent Changes Related to MSME

Ministry of Micro, Small and Medium Enterprises vide notification dated 1st June 2020 has changed the criteria for classification of micro, small and medium enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

For details, please refer the attached document: Brief Note On Recent Changes Related to MSME

Disclaimer:-

The information contained herein is in summary form based information provided on the website of the Ministry of Micro, Small & Medium Enterprises Press Release and Notification dated 01st June 2020.While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Posted in Regulatory |

Final Notification on the Manner of Calculating Remuneration to Eligible Fund Manager u/s 9A

CBDT issues final notification on the manner of calculating remuneration to eligible fund manager u/s 9A of the Act.

For details, please refer the attached document: Final Notification on the Manner of Calculating Remuneration to Eligible Fund Manager under section 9A

Disclaimer:-

The information contained herein is in summary form based information provided in Notification No. 29/2020 dated 27th May 2020 issued by CBDT. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Posted in Direct Tax |

SEBI Advisory on Disclosures of COVID-19 Impact

Securities and Exchange Board of India has issued Advisory on disclosure of material impact of COVID – 19 pandemic on listed entities under SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 vide circular SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated May 20, 2020. This circular will come into force with immediate effect.

As per circular, listed entities have been encouraged to evaluate the impact of the COVID-19 pandemic on their business, performance and financials, both qualitatively and quantitatively, to the extent possible and disseminate the same.

For further details, please refer the attached document: SEBI Advisory On Disclsoure of COVID 19 Impact

Disclaimer:-

The information contained herein is in summary form based on SEBI Circular and information available in public domain. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Posted in Audit & Assurance |

Impairment of Assets and Financial Assets

COVID-19 may impact a company’s projected cash flows due to a decrease in demand for its product, supply chain disruptions, or other events. In such situations, a company needs to consider whether the disruption in its business indicates that a “triggering event” has occurred. On account of these events, an impairment assessment is warranted and the assumptions and cash flow forecasts used to test for impairment should be updated to reflect the potential impact of COVID-19. Budgets, forecasts, and other assumptions should reflect the increased risk and uncertainty.

For the purpose of Statutory Audit of FY 2019-2020 and Q1 ending June 2020, Companies are required to provide relevant documentation and records pertaining to assessment of Impairment and in case any non- compliance is identified, the Audit Report (Standalone and Consolidated) may contain relevant disclosure in this regard.

For further details, please refer the attached document: Impairment of Assets & Financial Assets

Disclaimer:-

The information contained herein is in summary form based on Accounting Standards/ Indian accounting standards prescribed under Companies Act, 2013 and is further based on information available in public domain. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Recipients should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Posted in Audit & Assurance |