- POSTED: 29 May 2014 18:00
Singapore Accounting Standards Council says it will work closely with the Singapore Exchange to help companies affected to transit to the new financial reporting framework.
SINGAPORE: Companies listed on the Singapore Exchange (SGX) will have to adhere to a new financial reporting framework identical to the International Financial Reporting Standards (IFRS) in 2018.
The Singapore Accounting Standards Council (ASC) and SGX issued a joint statement on Thursday (May 29) stating companies must apply the new framework for annual periods beginning on or after Jan 1, 2018.
Both ASC and SGX will engage affected companies to transit to the new framework over the next three years, according to the statement.
"Singapore has long been an advocate of a single global financial reporting language. Taking the final leap towards full convergence with IFRS for our capital market is a decisive step towards cementing Singapore's standing as a trusted international financial and business centre," said ASC Chairman Mr Michael Lim.
"It will also place Singapore-listed companies on a level playing field with their counterparts in the IFRS community and eliminate any perception that they may be applying standards that are different from IFRS, even though they have been IFRS-compliant in substantive manner for more than a decade," he added.
SGX and ASC are also working out whether and when to extend the new financial reporting framework to other entities listed on SGX such as real estate investment trusts and business trusts, as well as entities looking to list on the Exchange.