{"id":571,"date":"2018-03-10T11:13:59","date_gmt":"2018-03-10T03:13:59","guid":{"rendered":"http:\/\/ehluar.com\/main\/?p=571"},"modified":"2018-07-07T11:18:15","modified_gmt":"2018-07-07T03:18:15","slug":"qa-for-sfrs-for-small-entities","status":"publish","type":"post","link":"http:\/\/ehluar.com\/main\/2018\/03\/10\/qa-for-sfrs-for-small-entities\/","title":{"rendered":"Q&A for SFRS for Small Entities"},"content":{"rendered":"

On 9 March 2018, the Accounting Standards Council (ASC) issued Singapore Financial Reporting Standard for Small Entities – Q&A Section 12, Issue 1 on Accounting for financial guarantee contracts in individual or separate financial statements of issuer.<\/span><\/p>\n

The Q&A is published to provide non-mandatory and timely guidance on specific accounting questions that are being raised in the implementation of the Singapore Financial Reporting Standard for Small Entities.<\/span><\/p>\n

The Q&A Section 12, Issue 1 can be found as follows:<\/span><\/p>\n\n\n\n<\/colgroup>\n\n\n\n
\n

Issue<\/b><\/span><\/p>\n<\/td>\n

\n

Response<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

A reporting entity prepares its financial statements applying the Singapore Financial Reporting Standard for Small Entities. <\/span><\/p>\n

The reporting entity guarantees repayment of a loan from a bank to another entity (a financial guarantee contract). <\/span><\/p>\n

An example of where this might commonly arise is when both entities are under common control. <\/span><\/p>\n

How does the reporting entity account for the financial guarantee contract issued to the bank in its separate or individual financial statements?<\/span><\/p>\n<\/td>\n

\n

The reporting entity shall account for the financial guarantee contract by applying the requirements in Section 12 Other Financial Instrument Issues<\/i> \u2014 unless the reporting entity chooses to apply the recognition and measurement requirements of FRS 39 Financial Instruments: Recognition and Measurement<\/i> (as permitted by paragraphs 11.2(b) and 12.2(b) of the Singapore Financial Reporting Standard for Small Entities). <\/span><\/p>\n

Financial guarantee contracts frequently have characteristics commonly associated with insurance contracts. <\/span><\/p>\n

The accounting treatment outlined in this Q&A should not be assumed to apply to other types of insurance contracts<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: ASC<\/i>, 10 March 2018<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

On 9 March 2018, the Accounting Standards Council (ASC) issued Singapore Financial Reporting Standard for Small Entities – Q&A Section 12, Issue 1 on Accounting for financial guarantee contracts in individual or separate financial statements of issuer. The Q&A is published to provide non-mandatory and timely guidance on specific accounting questions that are being raised […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,6],"tags":[],"class_list":["post-571","post","type-post","status-publish","format-standard","hentry","category-accounting","category-techupdates"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=571"}],"version-history":[{"count":1,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/571\/revisions"}],"predecessor-version":[{"id":572,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/571\/revisions\/572"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=571"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}