Environment, Social and Governance (ESG) reporting and related assurance is gaining significant momentum across the globe with a growing support from investors and companies alike for a global set of baseline standards around sustainability reporting. This has also been the overarching theme of the recently held annual conference of the American Institute of CPAs (AICPA) and CIMA (Chartered Institute of Management Accountants) on the current Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) developments. Further, high quality standard-setting, implementation and application of those standards, and audits have been outlined as the key elements to support high quality financial reporting. In this edition of Accounting and Auditing Update (AAU), we cast our lens on the accounting and financial reporting developments and other matters affecting a company following US GAAP as discussed in the conference.

Currently, there is no explicit guidance on accounting for supplier finance arrangements. To address the concerns relating to such arrangements and to meet the user information needs in a way that complements the current requirements in IFRS standards, the International Accounting Standards Board (IASB) has proposed certain amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures through an Exposure Draft (ED). The proposed amendments will add disclosure requirements relating to supplier finance arrangements. In our article on this topic, we provide an overview of the accounting provisions applicable to supplier finance arrangements and disclosures proposed by IASB in the ED.

Recently, the Securities and Exchange Board of India (SEBI) through amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). Now approval of shareholders is mandatory for appointment or a re-appointment of a person, including as a managing director, whole-time director or a manager, who was earlier rejected by the shareholders at a general meeting. Further, it has also issued revised norms for imposing fines and taking action for non-compliance with the continuous disclosure requirements specified under the Listing Regulations by the issuers of listed Non-Convertible Securities (NCS) and/or Commercial Papers (CPs). Our regulatory updates section covers these and other important regulatory developments in India.