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Edited by: Chantal Rassart, CPA, CA  This e-newsletter has been provided by Deloitte as an information service to clients and friends of the Firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Deloitte does not assume any liability for actions taken in relation to this summary. |  DeloitteLINKStaying on top of standard-setting initiatives
Vol. 14-23
August 22, 2014 | | To better manage your Deloitte subscriptions and enable us to communicate with you more efficiently, please visit our preference centre. Our centre allows you to subscribe to receive information that is relevant to your business needs and interests. | Accounting and reporting of retirement obligations associated with tangible capital assets controlled by a public sector entity Stakeholders are encouraged to submit their comments, on the form provided, by November 21, 2014. The Public Sector Accounting Board (PSAB) proposes, subject to comments received on this Statement of Principles, and following its due process, to expose a proposed new Section on retirement obligations associated with tangible capital assets controlled by a public sector entity. The Section would apply to public sector entities that base their accounting policies on the CPA Canada Public Sector Accounting (PSA) Handbook.
The main features of this Statement of Principles are as follows: - Retirement obligations associated with tangible capital assets result from legal, constructive and equitable obligations.
- Retirement costs increase the carrying amount of the related tangible capital asset or a component thereof and are expensed in a rational and systematic manner.
- Subsequent remeasurement of the liability can result in either a change in the carrying amount of the related tangible capital asset or a component thereof, or an expense, depending on the nature of the remeasurement and whether the asset remains in productive use.
- Retirement obligations associated with tangible capital assets include post-retirement operation, maintenance and monitoring.
- A present value technique is often the best method with which to estimate the liability.
| This Week in Review Standard-setting Activities Digest The Standard-setting Activities Digest (the Digest), published on a monthly basis not only represents an excellent starting point towards the original published text of the standard-setting organization but also present a single source of reference for current standards, future standards, exposure drafts and projects. You may register here to receive automatically a publication alert in your email. The following items have been released this week and will be included in the next edition of the Digest: | Canada | | Mining Industry Task Force on IFRSs | Accounting for Precious Metal Streaming Arrangements by the Producer
Discusses the factors that may be helpful in determining how to account for a precious metal streaming arrangement by the Producer. An analysis of accounting implications is included. | Commodity Prices and Impairment
Considers how commodity prices factor into impairment assessments and the calculations of possible impairments. | Identifying Levies in the Mining Industry
Discusses the type of payments made by a mining company that may fall within the scope of IFRIC 21 Levies. The document provides an overview of IFRIC 21 and considers the implications for a mining company. | | Oil and Gas Industry Task Force on IFRSs | Identifying Levies in the Oil and Gas Industry
Discusses the type of payments made by an oil and gas that may fall within the scope of IFRIC 21 Levies. The document provides an overview of IFRIC 21 and considers the implications for an oil and gas entity. | IFRS 11 and Arrangements not Structured Through a Separate Vehicle (updated)
Provides insights on conducting a joint control and classification assessment, accounting for a joint operation including acquisition of an interest in a joint operation, and considers disclosure implications. | Segment Reporting
Discusses the IFRS requirements and options relating to segmented reporting for an oil and gas entity. Illustrative examples are included. | | PSAB Activities | Statement of Principles – Retirement Obligations
PSAB has issued a Statement of Principles that addresses the accounting and reporting of retirement obligations associated with tangible capital assets controlled by a public sector entity. Stakeholders are encouraged to submit their comments, on the form provided, by November 21, 2014. | | United States | | FASB Activities | Exposure Draft, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.
The amendments in this proposed Update would provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer would account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer would account for the arrangement as a service contract. | | PCAOB Activities | Staff's Concept Paper on Accounting Estimates & Fair Value
This paper discusses and solicits comment on certain issues related to auditing accounting estimates and fair value measurements. It describes the staff's preliminary views concerning the potential need for change and presents potential revisions to PCAOB standards in response to that potential need for change. This paper requests comment on these issues and on a possible approach to changing existing standards, as well as possible alternatives. | | The Center for Audit Quality (CAQ) SEC Regulations Committee Activities | Highlights of Joint meeting with SEC staff (June 25, 2014)
The following issues were discussed at the meetings:- Crowdfunding and Regulation A Rule Proposals
- Investor Advisory Committee
- Disclosure Effectiveness
- Rulemaking for Conflict Minerals and Extractive Industry Payments
- Cybersecurity Roundtable
- Earnings Per Unit Within MLP's (Master Limited Partnership)
- Income Statement Presentation for REITs upon adoption of ASU 2014-08, Reporting Discontinued Operations
- Complying with S-X Rule 3-12 in connection with a registration statement on Form 10 which becomes effective automatically
- Use of a "To-Be-Issued" Audit Report
- Impact of New Revenue Recognition Standard on Disclosures Outside of the Financial Statements
| | International | | EU Activities | Consultation on the impact of International Financial Reporting Standards (IFRS) in the EU
The European Commission has launched a public consultation on the impact of International Financial Reporting Standards (IFRS) in the European Union, with a particular interest in to what extent the adoption of IFRS has improved the efficiency of EU capital markets by increasing the transparency and comparability of financial statements. | | IASB Activities | IASB Exposure Draft – Recognition of Deferred Tax Assets for Unrealised Losses (Proposed amendments to IAS 12)
The IASB has issued an Exposure Draft proposing amendments to IAS 12 Income Taxes to clarify how to account for deferred tax assets related to debt instruments measured at fair value. Canadian stakeholders are encouraged to submit their comments to the IASB by December 18, 2014. | Final Amendments – Equity Method in Separate Financial Statements
The IASB has issued narrow-scope amendments to IAS 27 Separate Financial Statements to allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The amendments are effective for annual periods beginning on or after January 1, 2016 with earlier application permitted. | Press review
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HC directs AO to verify undisclosed bank transactions of assessee for determining his undisclosed income
August 26, 2014[2014] 47 taxmann.com 386 (TRIPURA)/[2014] 363 ITR 168 (TRIPURA)
IT : Where Commissioner gave a number of opportunities of being heard to assessee, revision order could not be assailed for not following principle of natural justice
IT : If bank transactions were not reflected in books of account same could be treated as undisclosed income
CA Chaitanya Maheshwari
We are attaching
detailed comparative analysis of Revised Tax Audit Report in the excel format with updated table formats as per the schema of
the Forms 3CA/3CB-3CD
on the Income Tax website. The file also contains the Screenshots of the updated schema for the clauses where the changes in table formats took place.The File will be helpful in understanding and filing Revised Tax Audit Report.
- See more at: http://taxguru.in/income-tax/comparative-analysis-revised-tax-audit-report.html#sthash.SGlJYlFs.dpuf
File attached
CA Sumit Grover
→Notification No. 18/2014 & 19 /2014-Service Tax dated 25th August' 2014→ Effective date of amendment—1st Oct'14
SERVICES PROVIDED BY RADIO TAXIS:
- Earlier, radio taxis were excluded from the purview of service tax by virtue of section 66D(o)(vi) of Finance Act,1994;
- However, in the Finance (No.2) Act, 2014, enacted on 6th August, 2014, the said section was amended & the "radio taxis" got deleted, resulting in levy of service tax thereupon. However, effective date wasn't notified. Now, the same has been notified as 1st October,2014;
- At the same time, abatement of 40% shall be allowed in such cases, as provided in entry no. 9/9A of N/N 26/2012-ST, amended by N/N 08/2014- ST, subject to the condition that no CENVAT is claimed.
- Hence, effective rate of service tax shall be 4.944%.
SERVICES BY WAY OF ADVERTISEMENT:
- As per the erstwhile provisions contained in section 66D(g) of Finance Act, 1994, sale of space for advertisement, other than radio & television, used to remain excluded from the levy of service tax.
- In the Finance (no. 2) Act, 2014, all advertisements, other than in print media, were made subject to service tax, though effective date of applicability of amended provisions, was not defined.
- Now, the same has been notified as 1st October, 2014.
DETERMINATION OF RATE OF EXCHANGE:
- From 28-May-2012, section 67A was inserted to determine the rate of exchange to be opted for the purpose of determination of value of the taxable service & such rate was construed to be the rates notified by CBEC from time to time, in accordance with section 14 of Customs Act,1962.
- This had led to various practical difficulties in the industry, since they had to separately maintain a track record as per CBEC rates for the purpose of valuing import or export of service, while in financial statements the rates were taken on a different basis(e.g. RBI rates, Bank TT buying/selling rate, etc.)
- Now, w.e.f. 1st October, 2014, rule 10 has been inserted in Service Tax Rules, 1994 to consider the rate of exchange as per GAAP on the date when Point of taxation arises in terms of the Point of Taxation Rules, 2011.
- Post this amendment, an ambiguity may arise as to whether the same rates may also be used for valuing export of services, or department may take the other view?
(Author can be reached at Sumitgrover.ca@gmail.com, +91-9910946323)
- See more at: http://taxguru.in/service-tax/negative-list-service-tax-rules-wef-01102014.html#sthash.R1HTyWa4.dpuf
__._,_.___
We are attaching detailed comparative analysis of Revised Tax Audit Report in the excel format with updated table formats as per the schema of the Forms 3CA/3CB-3CD on the Income Tax website. The file also contains the Screenshots of the updated schema for the clauses where the changes in table formats took place.
→Notification No. 18/2014 & 19 /2014-Service Tax dated 25th August' 2014
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