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IFRS APPLICATION AROUND THE WORLD JURISDICTIONAL PROFILE: Singapore

Disclaimer: The information in this Profile is for general guidance only and may change from time to time. You should not act on the information in this Profile, and you should obtain specific professional advice to help you in making any decisions or in taking any action. If you believe that the information has changed or is incorrect, please contact us at ifrsapplication@ifrs.org. This Profile has been prepared by the IFRS Foundation based on information from various sources. The starting point was the answers provided by standard-setting and other relevant bodies in response to a survey that the Foundation conducted on the application of IFRSs around the world between August and December 2012. The Foundation drafted the profile and invited the respondents to the survey and others (including regulators and international audit firms) to review the drafts, and their comments are reflected. Profile last updated 5 June 2013

PARTICIPANT IN THE IFRS FOUNDATION SURVEY ON APPLICATION OF IFRSs


Organisation Role of the organisation Singapore Accounting Standards Council (ASC) The ASC is the official accounting standard-setting body in Singapore. The Accounting Standards Act was passed in Parliament on 27 August 2007 and went into effect on 1 November 2007. With the enactment of the Accounting Standards Act, the ASC took over the task of prescribing accounting standards from the Council on Corporate Disclosure and Governance (CCDG). In addition to prescribing accounting standards for companies, the ASC also prescribes accounting standards for charities, co-operative societies, and societies. http://www.asc.gov.sg/ goh_suat_cheng@asc.gov.sg

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COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS


Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards? Has the jurisdiction made a public commitment towards IFRSs as that single set of high quality global accounting standards? What is the jurisdiction's status of adoption? Yes.

Yes.

Singapore has adopted most, but not all, IFRSs and has made several modifications to the IFRSs that it has adopted. The standards are known as Singapore Financial Reporting Standards (SFRSs). Singapore started the process of aligning SFRSs closely with IFRSs in 2002. The ASC has also adopted a plan for full convergence of SFRSs with IFRSs. However, the timeline for this full convergence has not yet been announced.

Additional comments provided on the adoption status?

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If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRSs as that set of standards, explain the jurisdiction's general position towards the adoption of IFRSs in your jurisdiction.

Not applicable.

EXTENT OF IFRS APPLICATION


For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction: Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRSs in their consolidated financial statements? Yes. Singapore incorporated companies are allowed to use IFRSs as issued by the IASB (rather than Singapore Financial Reporting Standards) if approval for the use of IFRSs is granted to such companies by the Accounting and Corporate Regulatory Authority of Singapore. In addition, a Singapore incorporated company that is listed on both a securities exchange in Singapore and a securities exchange outside Singapore is permitted to use IFRSs as issued by the IASB if the securities exchange outside Singapore on which the company is listed requires the use of IFRSs. In both of those circumstances, there is no need for Singapore incorporated companies using IFRSs to reconcile their IFRS financial statements to SFRSs. If YES, are IFRSs REQUIRED or PERMITTED? Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones? Are IFRSs also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market? For instance, are IFRSs required or permitted in separate company financial statements of companies whose securities trade in a public market? For instance, are IFRSs required or permitted for companies whose securities do not trade in a public market? If the jurisdiction currently does NOT require or permit the use of IFRSs for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRSs for such companies in the future? Permitted. Some, as described above.

Yes.

No.

Permitted. Singapore incorporated companies, including private companies, are allowed to use IFRSs as issued by the IASB if approval is granted by the Accounting and Corporate Regulatory Authority of Singapore. Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction: Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRSs in their consolidated financial statements? Yes.

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If YES, are IFRSs REQUIRED or PERMITTED in such cases?

IFRSs are permitted (instead of Singapore Financial Reporting Standards) if approval is granted by the Accounting and Corporate Regulatory Authority of Singapore. In addition, a foreign company that is listed both on a securities exchange in Singapore and a securities exchange outside Singapore is permitted to use IFRSs if the securities exchange outside Singapore on which the company is listed requires the use of IFRSs. All.

Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?

IFRS ENDORSEMENT
Which IFRSs are required or permitted for domestic companies? Singapore Financial Reporting Standards are required. However, companies may apply to the Accounting and Corporate Regulatory Authority of Singapore for permission to use IFRSs. Singapore Financial Reporting Standards.

The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with: Does the auditor's report and/or the basis of preparation footnote allow for dual reporting (conformity with both IFRSs and the jurisdictions GAAP)? Are IFRSs incorporated into law or regulations? If yes, how does that process work? If no, how do IFRSs become a requirement in the jurisdiction?

No.

No. No. As explained above, Singapore Financial Reporting Standards are the required standards in Singapore. However, companies may apply to the Accounting and Corporate Regulatory Authority of Singapore for permission to use IFRSs. No.

Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRSs (including Interpretations) in place If yes, what is the process? If no, how do new or amended IFRSs become a requirement in the jurisdiction? Has the jurisdiction eliminated any accounting policy options permitted by IFRSs and/or made any modifications to any IFRSs?

Not applicable. Not applicable.

Yes.

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If yes, what are the changes?

Singapore has not yet adopted the following IFRSs: IFRIC 2 Members Shares in Co-operative Entities and Similar Instruments (which was effective in 2006). The amendments to IFRS 10 and IFRS 12 on Investment Entities (which are effective 1 January 2014). IFRS 9 Financial Instruments (which is not effective until 2015).

Singapore has made modifications to the following IFRSs in adopting them as SFRSs: Under the Singapore FRS 16 Property, 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 as required by IAS 16. Singapore made some changes to the requirements to present consolidated financial statements and in accounting for associates and joint ventures as compared to IAS 27, IAS 28, and IAS 31. IFRIC 15 Agreements for the Construction of Real Estate (modification of the accounting treatment for a specific type of sale of uncompleted residential properties). IAS 12 Income Tax (modification relating to foreign-sourced income not yet remitted to Singapore).

Singapore deferred the effective dates of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, and IFRS 12 Disclosure of Interests in Other Entities, and the related recent amendments to IAS 27 and IAS 28, from 1 January 2013 to 1 January 2014.

Other comments regarding the use of IFRSs in the jurisdiction?

The ASC is currently working towards signing a formal contractual agreement with the IFRS Foundation for the use of IFRS content.

TRANSLATION OF IFRSs
Are IFRSs translated into the local language? If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRSs? No. English is the business language in Singapore. Not applicable.

APPLICATION OF THE IFRS FOR SMEs


Has the jurisdiction adopted the IFRSs for SMEs for at least some SMEs? If no, is the adoption of the IFRS for SMEs under consideration? Did the jurisdiction make any modifications to the IFRS for SMEs? If the jurisdiction has made any modifications, what are those modifications? Yes effective 1 January 2011. Not applicable.

Yes, but they are not substantive modifications to the accounting recognition, measurement, presentation, and disclosure principles in the IFRS for SMEs. The only differences between the SFRS for Small Entities and the IFRS for SMEs are: a. where the IFRS for SMEs has a cross-reference to an IFRS, the Singapore Financial Reporting Standard for SMEs has a cross-reference to the corresponding SFRS; and b. not all Singapore companies that meet the IASBs definition of SMEs are eligible to use the SFRS for Small Entities.

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Which SMEs use the IFRS for SMEs in the jurisdiction, and are they required or permitted to do so?

An entity is eligible to the use the SFRS for Small Entities if it is not publicly accountable, publishes general purpose financial statements for external users, and meets the definition 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: a. b. c. total annual revenue of not more than S$10 million (approximately US$ 8 million); total gross assets of not more than S$10 million (approximately US$ 8 million); total number of employees of not more than 50.

For those SMEs that are not required to use the IFRS for SMEs, what other accounting framework do they use? Other comments regarding use of the IFRS for SMEs?

They may use full SFRSs or, if they receive permission from the ACRA, they may use full IFRSs.

None.

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