This update was first published in the May 2012 International edition of Accounting and Business magazine
In March, the Accounting Standards Council (ASC) completed its review of the plans for full convergence of the Singapore Financial Reporting Standards (SFRS) with the International Financial Reporting Standards (IFRS) for Singapore-incorporated companies listed on the Singapore Exchange (Singapore-listed companies), and has concluded that full convergence will not be implemented in 2012, after the ASC identified key outstanding issues.
The timeline for full convergence will be adjusted in tandem with international developments, and will depend on the progress of several key projects undertaken by the International Accounting Standards Board (IASB) that are still in progress and not expected to take effect before 1 January 2015. The ASC had also noted that major capital markets such as the US are still in the process of working out their IFRS convergence plans.
The ASC will continue to work closely with the IASB and other regional standard-setters to ensure that the IFRS continues to reflect the economic substance of underlying transactions in Singapore and the Asian region. It will also continue to consult local stakeholders on the convergence implementation plans.
Joseph Alfred, policy and technical adviser, ACCA Singapore