The ASC has issued a reminder letter to companies applying the Financial Reporting Standards (FRS) on the new major standards on financial intruments, revenue recognition and leases. The standards, which will be effective from annual periods of 2018-2019, will affect companies across different industries, with potentially broad implications beyond financial reporting. The ASC reminds Directors and Chief Financial officers of the aforesaid companies to take the necessary steps to ensure a smooth and timely transition to the standards. The letter also provides a high-level overview of the standards and some of their key implications.

The ASC has issued Amendments to FRS 104: Applying FRS 109 Financial Instruments with FRS 104 Insurance Contracts. Please refer to the document for the respective effective dates of each amendment.

The ASC has issued INT FRS 122: Foreign Currency Transactions and Advance Consideration, effective for annual periods beginning on or after 1 January 2018.

The ASC has issued Improvements to FRSs (December 2016). Please refer to the document for the respective effective dates of each amendment. 

The ASC has issued Amendments to FRS 40: Transfers of Investment Property, effective for annual periods beginning on or after 1 January 2018.

The ASC has issued a reminder letter on the 2018 timeline for full IFRS convergence and the new major IFRS standards to Directors and Chief Financial Officers of Singapore-incorporated companies listed on SGX. The ASC has also developed, jointly with the Institute of Singapore Chartered Accountants, a set of Q&As on full IFRS convergence to assist companies take the necessary steps to achieve effective implementation.

The ASC reminds Singapore-incorporated companies listed on SGX of full IFRS convergence in 2018 and affirms retention of existing frameworks for other Singapore-incorporated companies. Please click here for the press release.

The ASC has submitted its comment letter to the IASB on ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11).

The ASC has issued Amendments to FRS 102: Classification and Measurement of Share-based Payment Transactions, effective for annual periods beginning on or after 1 January 2018.

The ASC has submitted its comment letter to the IFRS Foundation on Exposure Draft Trustees' Review of Structure and Effectiveness: Proposed Amendments to the IFRS Foundation Constitution.

The ASC invites comments on ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11) by 26 August 2016.

The ASC has issued FRS 116 Leases, effective for annual periods beginning on or after 1 January 2019.

Notably, FRS 116 reforms lessee accounting by introducing a single lessee accounting model. Specifically, lessees are required to recognise all leases on their balance sheets to reflect their rights to use leased assets and the associated obligations for lease payments, with limited exemptions.

FRS 116 essentially brings an end to lessees' off-balance sheet accounting for existing operating leases, unless exempted. In many cases, a key implication is an increase in reported assets and liabilities, accompanied by a front-loaded pattern of lease expense comprising depreciation and interest. Consequently, key financial metrics, such as gearing, liquidity and return on capital, will be affected. Lessees' compliance with financial covenants and/or regulatory requirements may also be affected.

These financial implications represent improved transparency about lessees' financial leverage and capital employed. Improved comparability will also result between entities that lease assets and entities that borrow to buy assets.

The full implications of FRS 116, including implications for lessors, will require in-depth analysis in the light of each entity's own facts and circumstances.

The ASC strongly encourages entities to commence impact assessment, implementation and stakeholders' communication in a timely manner. This includes taking actions necessary to prevent potential breaches of financial covenants and/or regulatory requirements arising from the application of FRS 116.

The ASC invites comments on Exposure Draft Trustees' Review of Structure and Effectiveness: Proposed Amendments to the IFRS Foundation Constitution by 29 July 2016.

The ASC has issued Amendments to FRS 115: Clarifications to FRS 115 Revenue from Contracts with Customers, effective for annual periods beginning on or after 1 January 2018.

The ASC has submitted its comment letter to the IASB on ED/2015/9 Transfers of Investment Property (Proposed amendment to IAS 40).

The ASC has submitted its comment letter to the IASB on ED/2015/8 IFRS Practice Statement: Application of Materiality to Financial Statements.

The ASC has issued Amendments to FRS 7: Disclosure Initiative and Amendments to FRS 12: Recognition of Deferred Tax Assets for Unrealised Losses, effective for annual periods beginning on or after 1 January 2017.

The ASC has submitted its comment letter to the Due Process Oversight Committee of the IFRS Foundation on Invitation to Comment IFRS Taxonomy Due Process.

The ASC has submitted its comment letter to the IASB on ED/2015/10 Annual Improvements to IFRSs (2014-2016 Cycle).

The ASC has submitted its comment letter to the IASB on ED/2015/11 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Proposed amendments to IFRS 4).

The ASC has submitted its comment letter to the IFRS Interpretations Committee on DI/2015/1 Uncertainty over Income Tax Treatments.

The ASC has submitted its comment letter to the IFRS Interpretations Committee on DI/2015/2 Foreign Currency Transactions and Advance Consideration.