Companies (Indian Accounting Standards) Rules, 2015 (released on 15th Feb 2015)

MCA has issued Companies (Indian Accounting Standards) Rules, 2015 under the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956).

These Accounting Standards (Ind AS) that are inline with upcoming International Financial Reporting Standards, which will alter the way transactions get accounted in India. 

During the first phase all companies, listed and unlisted, with net worth over of Rs 500 crore and their holding, subsidiary, joint venture or associate companies have to report under these standards for financial year, beginning April 1, 2016.

The second phase, from financial year 2017-18, covers the companies which have equity or debt securities listed Indian or International stock exchanges and have net worth under Rs 500 crore. It also includes other companies having net worth of rupees 250 crore but less than 500 crore and their holding, subsidiary, joint venture or associate companies.

Net worth will be measured as of March 31, 2014.

Firms can voluntarily follow these from April 1 this year itself.

Notably, companies that are listed or in the process of listing on SME platform or ITP platform are exempt. However, they may voluntarily adopt Ind AS

http://www.mca.gov.in/MinistryV2/Stand.html

Riskpro is planning to conduct training on various topics please visit http://www.riskpro.in/training to find out more 

Whistle Blowing to external partiesVs Raising Concerns to the Internal Audit team

A recent article on Sydney Morning Herald  "Whistleblower's NAB leak reveals persistent bad behaviour in financial planning, fuels royal commission calls" raises the question about how seriously was internal audit taken in NAB.

I am sure the internal audit reports would have highlighted these concerns in addition to the serious issues the internal audit team found in NAB's It systems in their 2010 report.

It also raising an interesting point about how people see internal audit in companies. Was the whistleblower from NAB more comfortable in going to the media rather than raising the concerns to the audit team. or did the whistleblower try his luck with internal processes and went to the media only after nothing was happening?


Read more: http://www.smh.com.au/business/banking-and-finance/whistleblowers-nab-leak-reveals-persistent-bad-behaviour-in-financial-planning-fuels-royal-commission-calls-20150220-13hv1f.html#ixzz3SNpSiCTn

Supply Chain Audits

Supply chain professionals do lots of supplier audits. They ask about quality standards, IP data protection, manufacturing process certifications, contract review requirements, document control measures, and source of origin of parts and raw materials.

But, surprisingly, they may not be asking how suppliers deal with bribes and corruption issues, according to a recent report from Achilles, a global supplier information management company.

Globally, about a third of large companies surveyed said they issue tenders or contracts without having an anti-bribery and corruption policy for their main suppliers, noted Achilles in a press release.

Please go to http://www.ebnonline.com/author.asp?section_id=1061&doc_id=276631 for more