Summary of the notifications issued by MCA on 18/06/2021
MCA amends provision related to chargeability of fee w.r.t databank registration by Independent Directors(IDs) under the Companies Act, 2013 and its Rules
Through this notification, MCA authorizes Indian Institute of Corporate Affairs, which is the Institute that creates and maintains the data bank of the IDs as required under the Act, to fix a fee for renewal of the registration by the IDs with prior approval of Central Government. Further, the Institute shall also levy an additional fee of Rs.1000 if there is a delay in filing of application towards inclusion or renewal by the IDs, within the timeline stipulated by the Act and its Rules.
MCA amends Companies (Indian Accounting Standards) Rules, 2015
Key Highlights of the amendment are as follows:
1. Following the amendments made by the International Accounting Standards Board (‘IASB’), the Institute of Chartered Accountants of India introduced the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) last year, which is more comprehensive than the existing Framework for the Preparation and Presentation of Financial Statements under Indian Accounting Standards. MCA, has therefore amended the said Rules to refer to this new framework, wherever applicabe.
2. Interest Rate Benchmark Reforms(Phase II): IndAs 107 on Disclosures with respect to Financial Instruments requires Additional disclosures related to interest rate benchmark reform to enable the readers of Financial Statements to understand the nature and extent of risk exposure arising from financial instruments subject to the interest rate benchmark reform and the Company’s risk management strategy in this regard etc. Similarly, IndAs 104 (Insurance Contracts),109 (Financial Instruments) and 116(Leases) are also amended to give effect to the Interest Rate Benchmark Reforms(Phase II) issued by IASB.
These notifications are integrated in our free-to-use website ca2013.com for your ready reference.