THE SINGAPORE ACCOUNTING STANDARDS COUNCIL ISSUES THE NEW ACCOUNTING STANDARD FOR FINANCIAL INSTRUMENTS

 

Singapore, 11 December 2014

The Singapore Accounting Standards Council (ASC) has completed its deliberation on the adoption of International Financial Reporting Standard (IFRS) 9 Financial Instruments and today issued the new standard as Singapore Financial Reporting Standard (FRS) 109 Financial Instruments. FRS 109 will be mandatorily effective for annual periods beginning on or after 1 January 2018. Early application is permitted if the date of initial application1 is on or after the issuance of FRS 109.

IFRS 9 was issued by the International Accounting Standards Board (IASB) in July 2014 as part of its project to replace International Accounting Standard 39 Financial Instruments: Recognition and Measurement. The IASB developed IFRS 9 in phases – classification and measurement, impairment and hedge accounting. Before IFRS 9 was issued, three earlier versions of the standard had been issued by the IASB. With all of the phases now completed, IFRS 9 permits the application of any of the earlier versions, but only if the date of initial application is before 1 February 2015.

Notwithstanding so, the ASC concluded that the application of an earlier version of the standard should not be permitted. The ASC considered that the adoption of earlier versions, which have already been amended by IFRS 9 and are available only for a short window period, would not give due credence to the standard. Notably, the ASC had not adopted these earlier versions during the development of IFRS 9, in view of the uncertainty about the full impact of the uncompleted phases and the possibility of further changes to the standard. The ASC further believed that phased adoption would not only introduce undue complexity, but also reduce the comparability of financial statements and potentially cause confusion to users of financial statements.

 

1The date when an entity first applies the requirements of FRS 109 and must be the beginning of a reporting period after the issue of this standard.

For media queries, please contact:


ASC, Secretariat Office
Email: MOF_Feedback_ASC@mof.gov.sg

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Issued by: The Singapore Accounting Standards Council
Date: 11 December 2014

 


BACKGROUND

The Singapore ASC is the independent accounting standard-setting body established under the Accounting Standards Act for companies, charities, cooperatives societies and societies in Singapore. In carrying out its mandate, the ASC takes into account:

  • The information needs of the stakeholders of the entities;
  • Facilitation of comparability, disclosure and transparency;
  • Compatibility with relevant international standards; and
  • Singapore’s reputation as a trusted international business and financial hub.

Last updated on 11 December 2014

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