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KPMG's Financial Reporting Matters is a newsletter that aims to keep you informed on financial reporting developments in Singapore and internationally.
It is the year-end financial reporting season again. What is on the radar of the Accounting and Corporate Regulatory Authority’s (ACRA) Financial Reporting Surveillance Programme in 2015? Issued by ACRA, the practice guidance alerts directors on potential areas of financial statement misstatements and enables them to pay closer attention to the financial statements before authorising the financial statements for issue.
Many have focused on how FRS 115, the new revenue standard, will impact the headline revenues of companies. However, few have yet to discuss the income tax implications that may arise with the adoption of this new revenue standard. The Inland Revenue Authority of Singapore (IRAS) has issued a public consultation paper in October 2015 soliciting views on whether or not tax rules should be amended to align with the FRS 115 accounting treatments.
Refer to the Supplement for a summary of changes in the areas of financial reporting standards, income taxes and legal and regulatory matters in 2015.
In December 2014, the Accounting Standards Council (ASC) issued FRS 109 Financial Instruments. This standard replaces most of the detailed guidance on financial instruments under FRS 39. While the effective date (January 2018) may seem a long way off, companies may benefit from early decisions regarding when and how to transition to FRS 109.
The standard offers a range of transition options. At one end of the spectrum, an entity can choose to restate comparatives to comply with the classification, measurement and impairment requirements in FRS 109. At the other end of the spectrum, an entity can choose not to restate comparative and instead recognise the cumulative effect in equity (the difference between the carrying amounts under FRS 39 and FRS 109 at the date of initial application) – and make no adjustment to the comparative information.
In October 2014, the Companies (Amendment) Bill was passed by Parliament. On 15 April 2015, the Accounting and Corporate Regulatory Authority (ACRA) announced that the legislative changes to the Companies Act will be effected in two phases. In this issue, we highlight the key amendments which will have implications on financial reporting.
With the arrival of the new revenue standard – FRS 115 Revenue from Contracts with Customers, companies in the food, drink and consumer goods (FDCG) sector will need to review their arrangements with distributors and retailers – e.g. trade incentives, warranties, returns and licences as the requirements of the new standard may change the amount or timing of the revenue recognised. In this issue, we highlight the key areas of potential changes affecting FDCG companies.
Less than a year after publishing their joint standard on revenue recognition, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) are back in standard-setting mode. In their February and March 2015 meetings, the Boards agreed to propose changes to the new standard and in different ways. Find out more about what the decisions could mean for you in this issue.
Credit adjustment for the valuation of derivatives is an area of increasing focus, and most entities do not recognise or calculate these adjustments correctly. In this issue, we highlight the key factors to consider when determining whether credit adjustments are relevant.
It’s the year-end financial reporting season again. What are the top five issues you need to consider when finalising the financial statements for 2014?
With the arrival of the new revenue standard – FRS 115 Revenue from Contracts with Customers, the construction industry has effectively lost its contract accounting ‘rule book’. Contractors will often find that applying the new standard to a traditional construction contract results in a revenue accounting outcome broadly similar to current stage of completion accounting. However, there is no automatic right to recognise revenue on a progressive basis for construction contracts, and many new concepts apply. In this issue, we help you come to grips with what’s changed
On 24 July 2014, the International Accounting Standards Board (IASB) issued the final version of the new financial instruments accounting standard, IFRS 9. This marks the culmination of the IAS 39 replacement project that was launched in 2008 in response to the financial crisis. Read this section to find out what the future entails for financial instruments accounting.
The IASB and the Financial Accounting Standards Board (FASB) issued a new global standard on revenue recognition - IFRS 15. The new standard may have a significant impact on the headline revenues of real estate developers that have long-term development projects spanning more than one year. Read this section to find out how real estate developers may be affected by this new standard.
The Accounting and Corporate Regulatory Authority (ACRA) has stepped up efforts in reviewing financial statements to monitor compliance with the Companies Act and Singapore Financial Reporting Standards. Directors who are legally responsible for the preparation of financial statements are personally answerable to all breaches identified by ACRA under the Financial Reporting Surveillance Programme.
What should directors do to effectively discharge their legal responsibilities under the Companies Act? What happens when directors fail to fulfil their responsibilities? We help answer these questions in this issue.
Integrated reporting, the new buzz word for corporate reporting. Who are the leaders and who needs to keep up? Are there good causes for change? In this issue, we help you answer these interesting questions.
Achieving quality growth based on innovation and deeper capabilities; building a fair and equitable society: These were the focus points for the Singapore Budget 2014 that was delivered on 21 February 2014. We provide an overview of the measures introduced this year that aim to help businesses achieve quality growth and their accounting implications.
The offsetting disclosure requirements in FRS 107 Financial Instruments: Disclosures are effective for the first time for 31 December 2013 year-end. In this issue, we provide you with practical insights to help you implement the new offsetting disclosure requirements.
On the international front, the new accounting standard for financial instruments IFRS 9 is likely to be effective in 2018 and lease accounting is back on the drawing board.
It’s the year-end financial reporting season again. What do you need to consider when finalising the financial statements for 2013? Usually, the focus will be on estimates and disclosures. Read this issue to find out which estimates and financial statements disclosures might require closer attention.
In addition, we provide you with an overview of changes in the areas of financial reporting standards, income taxes, and legal and regulatory issues in 2013. It is worth checking this list against your own circumstances to see if any of them require changes to your financial statements or any disclosures for the year end 2013.
Also, many businesses will be entitled to the benefits under the Productivity and Innovation Credit Scheme. Have you included the benefits in your tax provision computation? Read this issue to find out the benefits you are entitled to and how you should account for your entitlement this year-end.
Last but not least, we bring to you a roundup of the latest accounting developments on the international front.
A new standard on joint arrangements, FRS 111, comes into effect 1 January 2014. What key questions should you be asking as you prepare for the transition?
In May 2013, the FASB and the IASB issued the controversial lease accounting proposal for a second round of public comments. The revised proposal is a watered-down version of the original issued in 2010 and contain concessions for property leases. How will the proposed changes impact tenants and landlords?
The Wage Credit Scheme, announced during Singapore Budget 2013, is part of a three-year Transition Support Package within the Government’s Quality Growth Programme. What are the key features of the scheme and how do you estimate and report the amount of entitlement in your interim and annual financial statements?
On the international front, various boards are seeking comments on standards including the IASB Conceptual Framework, the IAASB exposure draft on improving the auditor’s report, and the IASB and the FASB exposure draft on insurance contracts. Read the section on International developments to find out more.
In May 2013, the new proposal on the lease accounting standard made it to the front page of the Business Times. Despite being controversial, the IASB and FASB are again proposing to bring most leases on-balance sheet for lessees. This issue, we take a look at the proposals in depth and how this will affect you.
The consolidation suite of standards, including FRS 110 Consolidation will be effective from 1 January 2014, with retrospective application required. This means that the time to get ready is now! What are the top five questions you should be asking yourself in preparing for the transition? We help you find out.
On the corporate reporting front, Integrated Reporting is now fast becoming the new buzz word. Find out more in our article if you are looking to improve the quality of your narrative reporting as a basis for a better dialogue with your investors and stakeholders.
A new year, a new set of financial reporting considerations.
In 2013, one of the most significant changes to accounting standards is FRS 113 Fair Value Measurement coming into effect. In this issue, we highlight the top 10 questions that you should be considering in the transition to the new standard.
A Better Singapore: Quality Growth, An Inclusive Society. This was the focus for Singapore Budget 2013 that was delivered on 25 February 2013. We provide an overview of the measures introduced this year for businesses and their accounting implications. We also take an in-depth look at the Integrated Investment Allowance scheme that was introduced in Budget 2012.
In December 2012, we informed you that the review of Singapore Companies Act was completed. As promised, in this issue, we looked at how the re-write of the Act would affect you.
In this issue, we summarise the changes in the areas of financial reporting standards, income taxes, and legal and regulatory issues in 2012. We also discuss a new exception to consolidation for investment entities, an amendment relating to the presentation of financial assets and financial liabilities, and various discussions on changes to the auditors report.
For readers who are keen on financial reporting by unit trusts and REITs under the revised RAP 7, we highlight the latest developments on the interpretation of RAP 7 (2012) since we first published our September 2012 Supplement on Revision to RAP 7, the recommended accounting practices for unit trusts and REITs in Singapore. (PDF, 265KB)
In August 2012, the ASC announced that the mandatory effective date for the suite of consolidation standards will be pushed back to the beginning of 2014. This deferral reflects the significant challenges faced by entities in implementing these standards, and we strongly encourage entities to continue working on assessing the impact of these standards.
We analyse situations where early adoption may be beneficial and examine what needs to be done when applying the standards for the first time. We also discuss changes in accounting for "joint ventures" arising from the new standard on joint arrangements.
The only mandatory change in accounting standards for the 2012 financial year relates to deferred tax on investment properties. We highlight a practical issue that arises when a tax planning strategy is employed by interposing holding companies to hold overseas investment properties.
For readers who are keen on financial reporting by unit trusts and REITs under the revised RAP 7, we have added a stand-alone supplement (PDF, 409KB) section in this issue to facilitate quicker access.
In this issue, we feature the recent requirement by Singapore Exchange for directors to opine on internal controls. We also discuss the practical implications of two changes to accounting standards that will be effective in 2013 ó accounting for employee benefits and applying the new consolidation model to real estate investment trusts (REITs).
In this issue, we feature the 2012 Budget Speech by providing an overview of the measures introduced this year and highlight how these measures can benefit businesses. We also discuss in further detail the principles and concepts of FRS 113 Fair value measurements and provide some insights on its potential impact on entities and financial statements.
In this year-end issue, we provide an overview of changes in financial reporting standards and tax changes for 2011. We then look at some examples where the application of FRS 110 could result in changes to the consolidation conclusion. We also look into the future and discuss about the emerging trend of Integrated Reporting. The accounting treatment for the tax allowance and stamp duty relief under the Mergers and Acquisitions Scheme is analysed in detail.
In this issue, we compare the requirements of the Charities Accounting Standard against the Singapore Financial Reporting Standards and highlight the potential impact on entities that adopt the new reporting framework. We then describe accounting for the land intensification allowance, introduced in the Singapore Budget Speech 2010, through an example. A tax incentive scheme for mergers and acquisitions is also featured.
In this issue, we discuss the recently issued amendments to FRS 12 Deferred Tax: Recovery of Underlying Assets and FRS 107 Financial Instruments: Disclosures ñ Transfer of Financial Assets. A tax incentive scheme involving the industrial sector is also featured and we discuss how businesses in this sector can benefit from this incentive.
In this issue, we feature the 2011 Budget Speech by providing an overview of the income tax changes for businesses and highlight how these changes can benefit businesses. We also discuss the accounting treatment for tax benefits under the Productivity and Innovation Credit scheme. In addition, we summarise the proposed changes to hedge accounting that are expected to have a significant impact in Singapore and briefly explain the differences between the newly issued SFRS for Small Entities and full FRS.
In this year-end issue, we provide an overview of changes in financial reporting standards for 2010 and introduce those changes that will become effective in 2011. We also summarise the amendments in the newly issued Improvements to FRSs 2010 and the proposed changes to the accounting for leases. In addition, we feature a tax incentive scheme that was introduced this year and discuss how businesses can take advantage of the Productivity and Innovation Credit scheme.
In this issue, we summarise the requirements of INT FRS 115 Agreements for the Construction of Real Estate, and take a closer look at the proposed new standard on revenue recognition. We also summarise other key developments that have an impact on financial reporting.
With the ASCís plans to fully converge with IFRS by 2012, preparers of financial statements should engage closely with the IASB accounting standard-setting agenda before the standards are issued and finalised. In this issue, we highlight a few key changes that the IASB plans to make on some of the most fundamental accounting concepts, and how these are likely to affect current practice.
In this issue, we discuss the recently issued FRSs on related party disclosures and the accounting for rights issues and debt for equity swaps. We also summarise other key developments that have an impact on financial reporting and provide an update on the IASB's activities arising from the global financial crisis.
In this year-end issue, we provide an overview of changes in financial reporting standards for 2009 and introduce those changes that will become effective in 2010. We also highlight other key developments that have an impact on financial reporting and provide an update on the IASB's activities arising from the global financial crisis.
In this issue, we discuss the revisions made to FRS 103 Business Combinations and FRS 27 Consolidated and Separate Financial Statements (2009) and the second annual Improvements to FRSs 2009. We also provide an update on IASBís activities, and summarise its progress to address the accounting issues that surfaced as a result of the global financial crisis.
This issue, we provide an update on IASB's activities and discuss two resulting amendments to financial reporting standards already adopted in Singapore.
We also highlight the recent changes to the SGX Listing Manual and to the financial statement announcements to be released via SGXNet. In addition, we look at the ASC's decision to fully converge FRS with IFRS for Singapore-incorporated companies listed on the SGX by 2012. Lastly, we summarise the adoption of the revised International Standards on Auditing and how it impacts our work and our clients.
In this issue, we discuss some of the accounting issues to consider as entities prepare for their 31 March 2009 quarterly or year-end financial reporting. We also discuss the accounting for the reduction in corporate income tax rate and the Jobs Credit Scheme introduced in the recent Budget, INT FRS 117 on distributions of non-cash assets to owners, IFRIC 18 on transfers of assets from customers and ED 10 on consolidated financial statements.
In this special report on the credit crisis, we take the opportunity to address some of the key questions that may arise as board members review and approve the financial statements of their companies for the year ended 31 December 2008, such as what issues to look out for, how they have been dealt with and what has been disclosed to shareholders.
We have also summarised the key best practice guidelines of the AC discussed in the recent ACGC Guidebook in this publication and provided an update on fair value accounting.
In this year-end issue, we highlight the recent changes in financial reporting standards and other key developments that have an impact on financial reporting. These include fair value discussions during the IASB and FASB round-tables. Companies should start preparing for these changes immediately if they have not already done so. Developments in corporate governance, the filing of financial statements in XBRL, the proposed changes to the SGX Listing Manual and some international developments are also covered.
In this special report on the credit crisis, we take the opportunity to summarise the Common Principles to Guide Financial Market Reform agreed at the G20 Washington meeting and discuss the steps the IASB has taken to address the credit crisis and fair value accounting.
In this issue, we discuss the revisions to FRS 1 Presentation of Financial Statements and the amendments to the accounting for FRS 102 Share-based Payment. We also discuss international developments during the last four months: the IASB and IFRIC have issued three revised standards, two new interpretations, three exposure drafts and a discussion paper.
In this issue, we discuss the key features of the new XBRL filing requirements, focussing on the common implementation issues and suggested approaches. We also discuss the changes in wording to the statutory auditors report and INT FRS 113 Customer Loyalty Programmes, which is effective 1 July 2008, and summarise some key developments that will have an impact on financial reporting.
In this issue, we focus on the implementation issues for FRS 108 Operating Segments and FRS 23 Borrowing Costs. We also discuss the accounting rules for first-time application of the new or revised International Financial Reporting Standards (IFRS) which are expected to be adopted in Singapore in the near future.
In this year-end issue, we summarise the key developments that have an impact on financial reporting.
In this issue, we clarify some general misconceptions about the implementation of FRS 107 Financial Instruments: Disclosures
This issue examines the proposed financial reporting standards for small and medium-sized entities
This issue discusses the findings from two recent financial statements reviews conducted internationally and in the UK. Also considered are changes in financial reporting matters that may have an impact on the financial results for the first quarter of 2007
This issue provides a quick reference for announced changes in financial reporting standards and changes in legislation and regulations that may impact on financial reporting.
The IFRIC has issued a proposed interpretation on the accounting for customer loyalty programmes. What is its impact on businesses such as credit card providers, airlines and petrol stations that have these programmes? In this issue, we also highlight an upcoming interpretation on interim financial reporting and impairment.
This issue highlights the recent amendments to the SGX Listing Rules. It also discusses how amendments to FRS 39 and FRS 104 affect accounting for financial guarantee contracts.
In this issue, we take a look at how changes in auditing standards have affected auditorsí work and their impact on company officers.
This issue highlights the recently issued financial reporting standard, FRS 107 Financial Instruments: Disclosures.
This issue discusses the recently issued Amendment to FRS 21 - Net Investment in a Foreign Operation and provides guidance on several practical issues on implementing FRS 102 Share-based Payment.
This issue provides a quick reference for all current and future changes in financial reporting standards and changes in legislation and regulations that impact on financial reporting.
This issue explains the significance and impact of the new interpretation, INT FRS 104 Determining whether an Arrangement contains a Lease, and highlights proposals in the latest exposure drafts relating to business combinations, consolidation and provisions.
This issue continues with the financial reporting implications of the Companies Amendment Act 2005 and discusses the impact on the assessment of impairment for receivables following the implementation of FRS 39 from 1 January 2005. This issue also covers the changes in the Code of Corporate Governance 2005 and Singapore Exchangeís recent proposed amendments to the listing rules.
This issue provides an overview of the key changes introduced by FRS 40 Investment Property, as well as a summary of the Companies (Amendment) Act 2005 with a focus on the implications of shares with no par value.
This edition continues with our discussion on business combinations, focusing on step acquisitions, accounting for a business combination using provisional amounts and reverse acquisitions. We also introduce draft international interpretations that will affect entities applying IAS 11 Construction Contracts in recognising revenue.
In this edition, we discuss some challenges that may be encountered in applying the latest standard on business combinations. Also highlighted are recent developments in the international financial reporting arena that may be of interest to Singapore companies.
This issue highlights developments in financial reporting requirements over the year.
In this issue, we discuss accounting for share-based payment and highlight some common issues relating to financial instruments accounting. Accounting for insurance contracts is enclosed as a supplementary issue.
In this issue, we discuss accounting for share-based payment and highlight some common issues relating to financial instruments accounting. Accounting for insurance contracts is enclosed as a supplementary issue.
In this inaugural issue, we highlight the standard on non-current assets held for sale and significant changes in accounting for business combinations, including intangibles and impairment.
Area of Interest
This section is dedicated to special topics and interests.
XBRL Financial Reporting
Singapore's Accounting and Corporate Regulatory Authority has announced changes to the filing requirements for Singapore incorporated companies effective 2 December 2013.
Find out more about how XBRL could affect your business.