The regulatory updates publication issued by the Foundation for Audit Quality (FAQ) highlights the latest developments in accounting, auditing and regulatory developments in India and internationally.

Regulatory updates for May 2023

Recently, the Securities and Exchange Board of India (SEBI) issued a circular, introducing the Legal Entity Identifier (LEI) system for issuers that have listed or are planning to list non-convertible securities, securitised debt instruments and security receipts. This unique global identifier for legal entities participating in financial transactions aims to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, which is a party to a financial transaction basis a unique 20-character code.

Additionally, on 25 May 2023, the International Accounting Standards Board (IASB) issued certain amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures. Some key new disclosure requirements introduced in this regard include:

IAS 7

• Terms and conditions of supplier finance arrangements
• Amount of liabilities that are part of the arrangements, further divided into amounts for which the suppliers have already received payment from the finance providers, and specifying the position of liabilities at the balance sheet date
• Range of payment due dates, etc.

IFRS 7

• The amendments have added supplier finance arrangements as an example to the existing disclosure requirements in IFRS 7 on factors a company might consider when providing specific quantitative liquidity risk disclosures about its financial liabilities.

This issue of the regulatory updates publication covers some of the important updates on accounting and regulatory matters and other discussion/consultation papers and publications for the period from 1 May 2023 to 31 May 2023. It also highlights some of the action points that auditors may consider when applying the relevant provisions.