Singapore IAS Plus IFRS Profile

8/17/2019 Singapore IAS Plus IFRS Profile

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Singapore

o National professional organisation website: Institute of Singapore Chartered Ac -

coun tants (formerly the Institute of Certified Public Accountants of Singapore)

o National standard setter:Singapore Accounting Standards Council (successor to

the Council on Corporate Disclosure and Governance)

o Response to IFAC Member Body Survey on Standard Setting and Reg u la tion

o Participant in the Asian-Ocean ian Stan dard-Set ters Group (AOSSG)

Financial reporting framework in Singapore

Accounting Standards

2002-2007 Council on Corporate Disclosure and Governance (CCDG)

In 2002, the Singapore government created the Council on Corporate Disclosure and Gover-

nance (CCDG) to replace the (then) Institute of Certified Public Accountants of Singapore as

the accounting standard setter for all companies incorporated in Singapore.

Since 2007 Accounting Standards Council (ASC)

The CCDG was replaced by the Accounting Standards Council (ASC) as of 1 November

2007. The ASC was established by the Accounting Standards Act, passed in Parliament on

27 August 2007. In addition to prescribing accounting standards for companies, the ASC will

also prescribe accounting standards for charities, co-operative societies, and societies. TheSingapore Government believes that 'creation of the ASC is a positive step towards ensuring

consistency in accounting standards, facilitating comparison of financial statements between

different entities and enhancing the credibility and transparency of financial reporting'.

The ASC is responsible only for the formulation and promulgation of accounting standards.

The monitoring and enforcement of compliance with accounting standards remains the pre-

rogative of the respective regulators, theAccounting and Corporate Reg u la tory Authority

(ACRA) for companies, Commissioner of Charities for charities, Registrar of Co-operative

societies for co-operative societies, and Registrar of Societies for societies.

SFRS for Small Entities

In December 2010, the ASC issued theSingapore Financial Reporting Standard for Small

Entities (SFRS for Small Entities).

TheSFRS for Small Entities is based on theIFRS for SMEs. The main differences are the

references to Singapore Financial Reporting Standards (SFRS) instead of IFRS, as well as

the description of the scope and applicability of theSFRS for Small Entities.

An entity is eligible to the apply theSFRS for Small Entities if it is not publicly accountable,publishes general purpose financial statements for external users, and meets the definition

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of a 'small entity' (for each of the previous two consecutive financial reporting periods, with

amended application to newly incorporated entities). An entity qualifies as a small entity if it

meets at least two of the three following criteria:

o total annual revenue of not more than S$10 million

o total gross assets of not more than S$10 million

o total number of employees of not more than 50.

The standard applies (as an option) as an alternative framework to the Singapore Financial

Reporting Standard (SFRS) for the preparation and presentation of general purpose financial

statements of entities for financial reporting periods beginning on or after 1 January 2011.

Comparison of Singapore Financial Reporting Standards and

IFRSsAs of November 2008, ASC has issued a set of accounting standards and interpretations

that are almost identical to the current set of International Financial Reporting Standards

(IFRS), though some differences between Singapore Financial Reporting Standards and

IFRSs remain, including the following:

o Under the Singapore FRS 16Property, Plant and Equipment, one-off revaluations

of such assets that took place between 1984 and 1996 are permitted without

requiring ongoing use of the revaluation model

o

Singapore FRS 17 removes the words in paragraph 14 and 15 of IAS 17, whichindicates that land normally has an indefinite economic life and, if title is not

expected to pass to the lessee by the end of the lease term, the lessee does not

receive substantially all of the risks and rewards incident to ownership

o Some differences exist in the requirements to present consolidated financial state-

ments and in accounting for associates and joint ventures as compared toIAS

27, IAS 28, andIAS 31

o There are some differences in the effective dates of the Singaporean equivalents

ofIFRS 2, IFRS 7

o The following have not yet been adopted:

o IFRS 3 (revised 2008)Business Combinations

o IAS 27 (revised 2008)Consolidated and Separate Financial Statements

o IAS 27 (revised 2008)Consolidated and Separate Financial State-

ments (Cost of an investment in the separate financial statements)

o IFRIC 2 Members' Shares in Co-operative Entities and Similar Instru-

ments

o IFRIC 15 Agreements for the Construction of Real Estate

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IFRS convergence

Singapore has been following a path of converging Singapore Financial Reporting

Standards (SFRS) with IFRS for Singapore listed companies for many years and

Singapore has adopted substantially all IFRSs issued by the IASB as SFRSs, albeit attimes with different effective dates and transition requirements. However, the timeline

for full convergence was adjusted to await developments in the major projects

on revenue recog ni tion, financial in stru ments and theim pair ment loss model, all of

which are of significance to Singapore entities. Given the mandatory or expected

mandatory effective date of 1 January 2017 and 2018 for the revenue recognition and

financial instruments projects, respectively, the ASC has now decided to introduce a

new financial reporting framework that is identical to IFRS for Singapore listed

companies for annual periods beginning on or after 1 January 2018. This framework

will also be made available for voluntary application by all non-listed Singapore-incor-

porated companies at the same time.

Related news

Singapore accounting standards to be fully converged with IFRSs

in 2!"

• 30 May 2014

• The Singapore Accounting Standards Council (ASC) has announced that Singapore-

incorporated companies listed on Singapore Exchange (SGX) will have to apply a financial

reporting framework fully identical with International Financial Reporting Standards (IFRSs)

in 2018.

#ans #oogervorst discusses the IAS$ work programme

• 29 May 2014

• IASB Chairman, Hans Hoogervorst gave a speech today at the IFRS Conference in

Singapore titled 'Charting progress towards global accounting standards'. He provided an

overview of the current use of IFRS around the world and discussed the IASB's work

programme, specifically providing insight into the joint leases project.

IFRS conference in Singapore announced

• 18 Feb 2014

• The IFRS Foundation has announced that its upcoming conference will be held in

Singapore on 29-30 May 2014. The conference will include discussions on the future of

financial reporting, as well as the latest IASB updates on the major IFRSs, implementation

issues, conceptual framework and research projects.

Agenda for the %ovember 2!& A'SS( meeting

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• 25 Nov 2013

• An agenda has been released for the fifth meeting of the Asian-Oceanian Standards

Setters Group (AOSSG), which is being held in Colombo, Sri Lanka on 27-28 November

2013. Representatives from many of the 26 countries which are currently members of

AOSSG will attend the meeting, as will representatives from the International Accounting

Standards Board (IASB). The meeting will include discussion on a number of IASB projects,

consider the results of a survey conducted by the AOSSG on accounting and Islamic finance

in the Middle East and North Africa, receive feedback on the IFRS implementation efforts

and regional capacity building, and consider ongoing membership and process

requirements.

IFRS Foundation publishes )urisdiction pro*les on the application

of IFRSs

•

05 Jun 2013

• The IFRS Foundation has posted to its website a collection of 66 'jurisdiction profiles'

detailing information about the adoption of International Financial Reporting Standards

(IFRSs) and the IFRS for SMEs in all of the G20 jurisdictions and 46 other jurisdictions.

Report from recent IFASS meeting released

• 17 Jan 2013

• A report has been issued summarising the discussions at a meeting of the

International Forum of Accounting Standard Setters (IFASS, formerly the NSS) held in Zurich

on 22-23 October 2012. The meeting covered a broad range of topics, including the futurerelationships between the IASB and regional and national standard setters, topical issues in

financial reporting, reports from regional groups and administrative matters.

'utcomes from the fourth A'SS( meeting

• 13 Dec 2012

• The Asian-Oceanian Standard-Setters Group (AOSSG) has released a communiqué

from its meeting held in Kathmandu, Nepal on 28 and 29 November 2012. Highlights include

plans for an ‘IFRS Centre of Excellence for a Developing Country’ (IFRS COEDC) in Nepal

that would help Nepal to build its standard-setting capacity, the need for rapid finalisation ofthe IASB's project on 'bearer biological assets', and discussion on Islamic finance accounting

issues.

Singapore defers mandatory application date of consolidation and

)oint venture standards+ cites implementation challenges

• 03 Sep 2012

• The Singapore Accounting Standards Council (ASC) has announced that it will allow

stakeholders more time to implement the Singaporean equivalents to the 'package of five'

standards addressing accounting for consolidation, involvements in joint arrangements anddisclosure of involvements with other entities. The mandatory effective date of the standards

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has been deferred for a year and they now apply to annual periods beginning on or after 1

January 2014. Entities can elect to early adopt the standards.

,entative agenda for A'SS( %ovember 2!2 meeting released

• 24 Aug 2012

• The tentative agenda has been released for the fourth annual meeting of the Asian-

Oceanian Standard-Setters Group (AOSSG), which is to be held in Kathmandu, Nepal on

28-29 November 2012.

Report from recent IFASS meeting released

• 04 Jun 2012

• The International Forum of Accounting Standards Setters (IFASS) met in Kuala

Lumpur on 29-30 March 2012. A detailed report of proceedings at the meeting has now been

released, outlining discussions on numerous topics such as the relationship betweenstandard setters and the IASB, the IASB's work programme and processes, and a report on

the possible adoption of IFRS in the United States noting a possible "step back".

'utcomes from si-th IFRS Regional .olicy Forum

• 02 Apr 2012

• A communiqué has been released from the sixth IFRS Regional Policy Forum held in

Kuala Lumpur, Malaysia from 26-27 March 2012.

Full convergence with IFRSs in Singapore will not occur by 2!2

• 02 Mar 2012

• The Accounting Standards Council in Singapore has determined that full

convergence of Singapore Financial Reporting Standards with IFRSs will not be

implemented in 2012, as had originally been planned.

IFRS Foundation ,rustees meet with representatives from

Singapore

• 17 Jan 2012

• The Trustees of the IFRS Foundation held a meeting with representatives of theSingapore Accounting Standards Council (ASC) and the local business community.

%otes from the IFRS Foundation ,rustees meeting

• 12 Jan 2012

• The IFRS Foundation Trustees held a meeting in Singapore on 12 January 2012.

Agenda for /anuary IFRS Foundation ,rustees meeting

• 18 Dec 2011

• A tentative agenda has been released for the IFRS Foundation Trustees meeting tobe held in Singapore on Thursday, 12 January 2012.

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'utcomes from %ovember 2!! A'SS( meeting

• 01 Dec 2011

• The third meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) was held

in Melbourne, Australia, on 23 and 24 November 2011.

Sustainable development platform established in Singapore

• 28 Oct 2011

• The World Business Council for Sustainable Development (WBCSD) and Singapore

Business Federation (SBF) have jointly established a CEO-led 'Sustainable Development

Platform' in Singapore.

0ore than 1 )urisdictions apply ISAs

• 11 Jul 2011

• On June 30 2011, Prof. Arnold Schilder, the Chairman of the IAASB, delivered a

speech on global progress in the use of the Clarified International Standards on Auditing

(ISAs) at the 2011 annual conference on Accounting and Accountability for Regional

Economic Growth in Latin America and the Caribbean (referred to as CReCER after its

Spanish/Portuguese acronym).

Singapore releases Accounting Standard for charities

• 28 Jun 2011

• The Singapore Accounting Standards Council (ASC) has issued an Charities

Accounting Standard (CAS), which is tailored to meet the needs of the charity sector and its

stakeholders.

Singapore E-change releases sustainability reporting guide

• 27 Jun 2011

• The Singapore Exchange (SGX) has introduced a Sustainability Reporting Guide (the

"Guide") for its listed companies.

A riving 3ind for IFRS from Asia4'ceania

• 08 Jun 2011

• The Asian-Oceanian Standard-Setters Group (AOSSG) has published today "A

Vision Paper of the Asian-Oceanian Standard-Setters Group 2011 — A Driving Wind for

IFRS from Asia-Oceania".

%ational Standard Setters 5%SS6 release report from their most

recent meeting

• 16 May 2011

• The National Standard Setters (NSS) have released a report from their March 2011

meeting.

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Singapore issues SFRS for Small Entities

• 02 Dec 2010

• The Singapore Accounting Standards Council (ASC) has issued the Singapore

Financial Reporting Standard for Small Entities (SFRS for Small Entities).

Asian4'ceanian Standard4Setters (roup launches website+ makes

documents public

• 04 Nov 2010

• The Asian-Oceanian Standard-Setters Group (AOSSG) has launched its website and

made a number of papers available, including on Islamic finance.

7pdate on IAS$ outreach activities

• 15 Sep 2010

• As part of its outreach activities, the IASB regularly undertakes a number of

discussion group forums in various locations around the globe.

Singapore accounting standards to be fully converged with IFRSs in

2018

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30 May 2014

The Singapore Accounting Standards Council (ASC) has announced that Singapore-

incorporated companies listed on Singapore Exchange (SGX) will have to apply a

financial reporting framework fully identical with International Financial Reporting

Standards (IFRSs) in 2018.

The announcement was made in the ASC Chairman's keynote address at the IFRS Founda-

tion's IFRS Conference currently held in Singapore.Singapore has been following a path of converging Singapore Financial Reporting Standards

(SFRS) with IFRS for Singapore listed companies for many years and Singapore has

adopted substantially all IFRSs issued by the IASB as SFRSs, albeit at times with different

effective dates and transition requirements. However, the timeline for full convergence was

adjusted to await developments in the major projects on revenue recog ni tion,financial in stru -

ments and theim pair ment loss model, all of which are of significance to Singapore entities.

Given the mandatory or expected mandatory effective date of 1 January 2017 and 2018 for

the revenue recognition and financial instruments projects, respectively, the ASC has now

decided to introduce a new financial reporting framework that is identical to IFRS forSingapore listed companies for annual periods beginning on or after 1 January 2018. This

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framework will also be made available for voluntary application by all non-listed Singapore-

incorporated companies at the same time.

The ASC argues that aligning full convergence with IFRSs with the effective date of major

new IASB pronouncements would mean that Singapore companies would not have to close

existing differences in transition requirements between SFRSs and IFRSs while transitioningto a fundamentally new standard shortly afterwards and would minimise the restatement of

comparatives on transition to the new framework. The implementation lead time of more than

three years would also enable enable stakeholders to appreciate the potential impact of, and

prepare for, the transition to the new framework.The ASC also comments:

[Full convergence with IFRSs] will also place Singapore-listed companies on a level playing

field with their counterparts in the IFRS community and eliminate any perception that they

may be applying standards that are different from IFRS, even though they have been IFRS-

compliant in a substantive manner for more than a decade.

Please click for the following information on the ASC website:

o press release

o full text of keynote address given by the ASC Chairman at the IFRS Foun da tion's

IFRS Con fer ence

Related Topics
http://www.asc.gov.sg/news/press_release_29052014.htmlhttp://www.asc.gov.sg/news/Chairman_speech_29052014.htmlhttp://www.asc.gov.sg/news/Chairman_speech_29052014.htmlhttp://www.asc.gov.sg/news/press_release_29052014.htmlhttp://www.asc.gov.sg/news/Chairman_speech_29052014.htmlhttp://www.asc.gov.sg/news/Chairman_speech_29052014.html

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