The Singapore Accounting Standards Council (ASC) chairman Michael Lim has pledged to launch a new reporting framework for Singapore listed companies "identical" to the global accounting language of the International Accounting Standards Board (IASB) by 2018.
At a conference in Singapore, Lim said the full convergence with the International Financial Reporting Standards (IFRS) will help the Singapore Exchange (SGX) to be on a level playing field with counterparts worldwide.
Currently, IFRS is not mandatory for Singapore incorporated companies listed on the SGX, although they are allowed to use the international standards if permission is granted by the accounting regulator.
In 2009 the ASC announced a full IFRS convergence plan to be implemented by 2017, which is now been adjusted so that the framework includes the standards on revenue recognition and financial instruments, IFRS 15 and IFRS 9 respectively.
"The adoption of the new financial framework in 2018 not only enables companies to apply the more robust new recognition standard, but it’s also aligned with the expected mandatory date of IFRS 9, which promises a simpler accounting for financial instruments," Lim said.
SGX chief executive Magnus Bocker said the embrace of standards fully convergent with IFRS would help transform Singapore’s stock into Asia’s foremost venue for investing.
The ASC will also consider whether to extend the new framework to other entities listed on the SGX, such as real estate investment trusts and recommended the profession’s stakeholders to prepare for the three-year transition period.
"This framework will also be made available for voluntary application by all non-listed Singapore-incorporated companies at the same time," Lim added.
IASB and FASB issue converged standard on revenue recognition
The Singapore Accounting Standards Council