Making a painless transition in IFRS convergence in Singapore

PUBLISHED JUNE 03, 2014

Making a painless transition in IFRS convergence

MAK KEAT MENG

ON May 29, 2014, the Singapore Accounting Standards Council (ASC) announced that Singapore-incorporated companies listed on the Singapore Exchange (SGX) will apply a new financial reporting framework identical to the International Financial Reporting Standards (IFRS) in 2018.

This landmark announcement is not surprising as it marks an important milestone for Singapore on the path towards full convergence together with other economies such as Australia and Hong Kong.

It is a timely move as IFRS has quintessentially become the de facto language for financial reporting around the world. Although the SFRS (Singapore Financial Reporting Standards) issued by the ASC are already closely aligned to the IFRS, this strategic initiative will further propel and establish Singapore entities in the global arena in line with other international players.

Numerous studies have demonstrated the benefits of a single global accounting standard for both developing and developed markets. The use of one set of high quality standards by companies globally will lead to an improvement in comparability and the transparency of financial information across different jurisdictions, and reduce the costs of preparing financial statements. A consistent and rigorous application of these standards will make the evaluation of similar companies across different countries by capital market participants easier and, in the process, enable better decision making.

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About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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