MAS urges business trusts to adopt new financial reporting framework

Firms are advised to use the new framework starting January 2018.

The Monetary Authority of Singapore (MAS) announced today that registered business trusts will adopt a new Singapore financial reporting framework that is identical to the International Financial Reporting Standards (IFRS), while authorised collective investment schemes will continue to prepare financial statements using accounting practices recommended by the Institute of Singapore Chartered Accountants (ISCA).

To recall, the Accounting Standards Council (ASC) announced that Singapore-incorporated companies must apply the new Singapore financial reporting framework for annual periods beginning on or after January 2018.

This decision, however, does not cover financial statements of registered business trusts and authorised collective investment schemes includind REITs.

MAS has decided that registered business trusts wiill be required to prepare financial statements in accordance with the New Framework for annual periods, aligning the treatment for such with that of Singapore-listed companies.

On the other hand, authorised CIS will not be required to prepare financial statements in accordance with the New Framework.

"Authorised CIS should continue to prepare financial statements according to the Statement of Recommended Accounting Practice 7 : Reporting Framework for Unit Trusts (RAP 7), issued by ISCA. This treatment for Authorised CIS is consistent with practices in other major fund jurisdictions such as the United Kingdom and the United States of America," MAS said.