Latest update on Amendments relating to Accounting under the Companies Act, 2013:
∆ Following amendments w.r.t. Audit Trail in Accounting Software and its reporting in Audit Report, deferred to 01-April-2022
1. Companies (Audit and Auditors) Second Amendment Rules, 2021
2. Company (Accounts) (Second Amendment Rules), 2021
Amendments relating to Accounting under the Companies Act, 2013:
1. Companies (Accounts) Amendments Rules, 2021
✓ Mandatory use of Accounting Software having Audit Trail:
- From Financial Year 2021-22 onwards, every Company shall use Accounting Software having features to record the audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.
2. Companies (Audit and Auditors) Amendments Rules, 2021
✓ Other Statutory Disclosures to be Included in Auditors Report:
A. Reporting regarding advances, loans & Investment other than disclosed in notes to accounts.
B. Receiving of funds for further lending or investing other than disclosed in notes to accounts.
C. Dividend declared or paid is in compliance of Section 123 of Companies Act, 2013.
D. Comment of use of Accounting Software having Audit Trail & other rules therein.
3. Amendments in Schedule III of Companies Act, 2013
✓ Introduction of certain new disclosure has been mandatory to be included in Auditor's Report as follows:
A. Disclosure of Shareholding of Promoters
B. Trade Payables ageing schedule with ageing
C. Reconciliation of the amounts of each class of assets
D. Trade Receivables with ageing schedule
E. Detailed disclosure regarding title deeds of Immovable Property not held in name of the Company.
F. Disclosure regarding revaluation & CWIP ageing.
G. Loans or Advances granted to promoters, directors, KMPs and the related parties
H. Details of Benami Property held
I. Reconciliation and reasons of material discrepancies, in quarterly statements submitted to bank and books of accounts.
J. Disclosure where a company is a declared wilful defaulter by any bank or financial Institution.
K. Relationship with Struck off Companies.
L. Pending registration of charges or satisfaction of Charges.
M. Compliance with number of layers of companies.
N. Disclosure of certain Ratios.
O. Compliance with approved Scheme(s) of Arrangements.
P. Utilisation of Borrowed funds and share premium.
Q. Details of transaction not recorded in the books that has been surrendered or disclosed as income in the tax assessments.
R. Disclosure regarding Corporate Social Responsibility.
S. Details of Crypto Currency or Virtual Currency.
Commencement of all above Amendments: April 1, 2021
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