Financial and Accounting System in Singapore

Singapore's financial sector benefits from an efficient legal system, accounting standards that are in tandem with International best practices and ongoing process to promote good Corporate Governance and to strengthen the framework of disclosure practices. Singapore has successfully implemented significant financial sector reforms since 1998, to position Singapore as a Global Financial Center.

Some of the key financial sector reforms are:

Opening the Financial Industry to greater foreign competition.
Bringing regulatory and supervisory practices closer in line with International best practices on prudential regulation and supervision and disclosure based regulation.
Developing deep and liquid fixed income and equity markets.
Promoting the asset management industry.
Gradually liberalizing the restrictions on the International use of the Singapore dollar.

Accountants Act

Accounting Corporation" means a company approved as an accounting corporation under section 17.
"Accounting firm" means a firm approved as an accounting firm under section 18.
“Accounting limited liability partnership” or “accounting LLP” means a limited liability partnership approved as an accounting limited liability partnership under section 18A.

Comparison between Singapore Financial Reporting Standards and International Financial Reporting Standards

Last Revision Of FRS	Singapore Financial Reporting standards	Report	International Financial Reporting Standards (IFRS)	Report	Overall Comparison
January 2006	FRS1	Presentation Of Financial Statements	IAS1	Presentation Of Financial Statements	FRS1 is consistent with IAS 1 in all material aspects
July 2004	FRS7	Cash Flow Statements	IAS7	Cash Flow Statements	FRS7 is consistent with IAS7 (effective from 1994) in all material aspects.
September 2004	FRS8	Accounting Policies, Changes In Accounting Estimates And Errors	IAS8	Accounting Policies, Changes In Accounting Estimates And Errors	FRS8 is consistent with IAS8 in all material aspects.
July 2004	FRS7	Cash Flow Statements	IAS7	Cash Flow Statements	FRS7 is consistent with IAS7 (effective from 1994) in all material aspects.
January 2006	FRS12	Income Taxes	IAS12	Income Taxes	FRS12 is consistent with IAS 12(effective from 1998)in all material aspects, except for accounting for unremitted foreign income. Under Recommended Accounting Practice(RAP)8 issued by the Institute of Certified Public Accountants of Singapore, no deferred tax is accounted for temporary difference arising from foreign income not yet remitted to Singapore if: the entity is able to control the timing of the reversal of the temporary difference and It is probable that the temporary difference will not reverse in the foreseeable future. Under IAS12, deffered tax is required to be accounted for temporary difference arising from such unremitted foreign income.
January 2006	FRS21	The Effects Of Changes In Foreign Exchange Rates	IAS21	The Effects Of Changes In Foreign Exchange Rates	FRS21 is consistent with IAS21 in all material aspects.
September 2004	FRS31	Interests In Joint Ventures	IAS31	Interests In Joint Ventures	Interests In Joint Ventures FRS31 is consistent with IAS31 in all material aspects, except in one of the conditions for exemption from proportionate consolidation or equity accounting. The dissimilarity is as identified in FRS27.
January 2006	FRS33	Earnings Per Share	IAS33	Earnings Per Share	FRS33 is consistent with IAS33 in all material aspects.
September 2004	FRS34	Interim Financial Reporting	IAS34	Interim Financial Reporting	IAS34 is consistent with IAS34 in all material aspects
January 2006	FRS101	First Time Adoption Of Financial Reporting Standards	IFRS1	First Time Adoption Of Financial Reporting Standards	FRS101 is consistent with IFRS1 in all material aspects.