The Accounting Standards Council (ASC) has carried out an evaluation
of the potential revisions to FRS 103 and FRS 27 that may result
from the issuance of the revisions to International Financial Reporting
Standard (IFRS) 3 and International Accounting Standard (IAS) 27
by the International Accounting Standards Board (IASB) in January
2008.
The objective of the revised standards, a project which the IASB
undertook with the United States Financial Accounting Standards
Board (FASB), was to develop a single high quality standard of accounting
for merger and acquisition activities that would ensure that the
accounting for business combinations is the same whether an entity
is applying IFRS or generally accepted accounting principles in
the United States (US GAAP).
The ASC’s evaluation of the revisions to IFRS 3 and IAS 27
included issues such as the impact of the revisions to Singapore
businesses, on which feedback was obtained from businesses, the
accounting sector and other interested parties, and active monitoring
of international developments in this area.
The ASC had also hosted a panel discussion on the issues arising
from the revisions to IFRS 3 as part of the IASB Regional Standard
Setters Meeting public seminar held on 17 July 2008 in Singapore.
The panelists from the Institute of Certified Public Accountants
of Singapore, academia, business and accounting sectors actively
shared their views on the revisions to IFRS 3 and its impact on
Singapore businesses.
The revisions to IFRS 3 and IAS 27 are applicable for annual periods
beginning on or after 1 July 2009, with early application permitted.
The ASC is currently in the process of finalising its position and
will decide on the possible adoption of the revisions to FRS 103
and FRS 27. The adoption of the revisions to FRS 103 and FRS 27,
where applicable, will not be earlier than for annual periods beginning
on or after 1 July 2009.
The ASC, as the accounting standards setting authority of Singapore,
will continue to conduct regular reviews of financial standards
and will make appropriate changes relevant to local business conditions
while taking cognizance of international developments.
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