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Accounting standards updates | Board Matters Quarterly - Issue 13, September 2012 - EY - Singapore

Accounting standards updates

Board Matters Quarterly - Issue 13, September 2012

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1. ASC allows more time for the implementation of FRS 110, FRS 111, FRS 112, FRS 27 and FRS 28

On 31 August 2012, the Accounting Standards Council (ASC) announced that it will allow stakeholders more time to implement the following Financial Reporting Standards (FRS), collectively referred as Relevant Standards:

  • FRS 110 Consolidated Financial Statements (FRS 110)
  • FRS 111 Joint Arrangements (FRS 111)
  • FRS 112 Disclosure of Interests in Other Entities (FRS 112)
  • FRS 27 Separate Financial Statements 
  • FRS 28 Investments in Associates and Joint Ventures 

The mandatory effective date of the Relevant Standards is deferred for a year from annual periods beginning on or after 1 January 2013 to annual periods beginning on or after 1 January 2014.

Earlier application of the Relevant Standards continues to be permitted, subject to the requirements for earlier application as set out in the Relevant Standards.

More details can be found at the ASC website (http://www.asc.gov.sg/news/press_release
_31082012.html)
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About the Relevant Standards

FRS 110 includes a new definition of control, and more explicit guidance which may change which entities are consolidated within a group. FRS 110 replaces the portion of FRS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements. It also includes the issues raised in INT FRS 112 Consolidation — Special Purpose Entities. What remains in the current FRS 27 Consolidated and Separate Financial Statements is limited to accounting for subsidiaries, jointly controlled entities, and associates in separate financial statements.

FRS 111 describes the accounting for joint arrangements with joint control. In addition, proportionate consolidation is not permitted for joint ventures (as newly defined). FRS 111 replaces FRS 31 Interests in Joint Ventures, and INT FRS 113 Jointly-controlled Entities — Non-monetary Contributions by Venturers.

FRS 112 includes all of the disclosures that were previously in FRS 27 Consolidated and Separate Financial Statements related to consolidated financial statements, as well as all of the disclosures that were previously included in FRS 31 and FRS 28 Investment in Associates. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. One of the most significant changes introduced by FRS 112 is that an entity is now required to disclose the judgments made to determine whether it controls another entity.
 

2. Changes to FRS effective in 2012 and available for early adoption in 2012

Listed companies with December financial year-end must consider the impacts of the following in 2012:

  • Changes to FRS that are effective for financial period beginning 1 January 2012.
  • Changes to FRS that are available for early adoption for annual period beginning 1 January 2012.

The table below lists out the new or revised FRS and interpretations that come into effect for financial periods beginning on or after 1 January 2012.

New or revised FRSEffective date (financial period beginning on or after)Details in
EY’s publications
Amendments to FRS 107 – Disclosures – Transfers of Financial Assets1 July 2011Supplement to IFRS Outlook Issue 85
Amendments to FRS 12 – Deferred Tax: Recovery of Underlying Assets1 January 2012Supplement to IFRS Outlook Issue 93

 
The table below lists out the new or revised FRS and interpretations available for early adoption in 2012.

New or revised FRSEffective date (financial period beginning on or after)Details in
EY’s publications
Amendments to FRS 1: Presentation of Items of Other Comprehensive Income1 July 2012IFRS Developments Issue 7
Amendments to FRS 19 Employee Benefits1 January 2013IFRS Developments Issue 6
FRS 113 Fair Value MeasurementIFRS Developments Issue 2
Amendments to FRS 107 – Disclosures – Offsetting Financial Assets and Financial LiabilitiesIFRS Developments Issue 22
Improvements to FRS 2012IFRS Developments Issue 29
INT FRS 120 Stripping Costs in the Production Phase of a Surface MineIFRS Developments Issue 13
Amendments to FRS 32 – Offsetting Financial Assets and Financial Liabilities1 January 2014IFRS Developments Issue 22
FRS 27 Separate Financial StatementsIFRS Developments Issue 1 , 35 
FRS 28 Investments in Associates and Joint Ventures
FRS 110 Consolidated Financial Statements
FRS 111 Joint Arrangements
FRS 112 Disclosure of Interests in Other Entities
 


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