The Accounting Standards Council (ASC) has considered the recent
amendments to FRS 39: Financial Instruments: Recognition and
Measurement and FRS 107: Financial Instruments: Disclosures
by the International Accounting Standards Board (IASB), which permit
reclassification of certain financial instruments in rare circumstances,
and has decided that the amendments are appropriate for Singapore
companies. Companies would be allowed to apply these amendments,
from 1 July 2008.
The ASC has decided to expedite the consultation process in the
light of recent market conditions. This is to allow our companies
to benefit from the amendments immediately. The ASC worked closely
with the Institute of Certified Public Accountants of Singapore
(ICPAS) and the relevant stakeholders, which strongly support the
adoption of the amendments to Singapore FRSs based on the IASB’s
amendments.
Ms Euleen Goh, Chairman of the ASC, said:
“The amendments to FRS39 should be welcomed by Singapore
companies as this would provide them greater flexibility. The amendments
are especially relevant given the current financial market turbulence.
Financial reporting issues relating to illiquid markets are a topic
that IASB and other countries are still grappling with. ASC, as
the accounting standards setting authority of Singapore, will also
be studying the issues further. We will be closely monitoring and
actively providing our inputs to the IASB on proposed accounting
standards.”
The ASC continues to conduct regular reviews of financial standards
and will make appropriate changes relevant to local conditions while
taking cognizance of international developments. |
