The Monetary Authority of Singapore (MAS) has announced that registered business trusts will have to adopt a new Singapore financial reporting framework that is identical to the International Financial Reporting Standards (IFRS) from 2018, while authorised collective investment schemes to continue prepare financial statements using accounting practices recommended by the Institute of Singapore Chartered Accountants (ISCA) which is consistent with practices in other major fund jurisdictions such as the UK and the USA.

The Accounting Standards Council (ASC) has decided on 29 May 2014 that Singapore- incorporated companies listed on the Singapore Exchange must apply a new financial reporting framework for annual periods beginning on or after 1 January 2018.

The decision made by ASC however did not cover to the financial statements of registered business trusts and authorised collective investment schemes, including real estate investment trusts, which was under MAS’s jurisdiction.

MAS will also amend prospectus disclosure requirements, replacing references to “FRS” – the current financial reporting standards – with the new framework, with effect from 1 January 2018. It will provide transitional relief for historical financial statements in prospectuses lodged on or after 1 January 2018.

Source: MAS, 19 January 2017