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Need for Separate Accounting Standards for Statutory Boards Statutory Boards are set up by Acts of Parliament and are directly accountable to the Parliament. Unlike corporations, they are set up to fulfill public functions and are not bottom-line driven. They also do not have public shareholders. In addition, there are areas in which the FRS is lacking for Statutory Boards. As SFRS, which is drawn up primarily for profit-oriented entities, cannot be adopted by the SBs in totality, it is necessary to have a separate set of accounting standards for the Statutory Boards. Framework for Accounting Standards for Statutory Boards FRS will remain the key guiding framework for the accounting standards for Statutory Boards. However, each FRS will be individually considered, and where necessary, modifications will be made or additional guidelines will be issued to address the unique needs of SBs. The accounting standards for Statutory Boards, prescribed by the Accountant-General will be known as the Statutory Board Financial Reporting Standards (SB-FRS). Each SB-FRS will bear the same number as the corresponding FRS. Modifications to the provisions of FRS may be incorporated into the SB-FRS. New SB-FRS of Interpretations to SB-FRS (INT SB-FRS) may also be introduced in areas where FRS does not provide sufficient guidance to Statutory Boards. Process of Adopting Standards issued by ASC When the ASC issues an Exposure Draft (ED), the Advisory Committee will in parallel publish an equivalent ED to seek comments from Statutory Boards and the public on this website. Depending on the complexity and nature of the issues in the EDs, the Advisory Committee Secretariat may conduct further research or consult with the accounting firms or academia. After the ASC issues the final standard or interpretation, the Advisory Committee will consider any changes from the earlier ED and the comments from SBs. Taking into consideration the views of the rest of the Advisory Committee, the Accountant-General as Chairman, will decide whether to adopt the standard or interpretation, and if so whether modifications are to be made. If modifications are made to the standard or interpretation issued by the ASC, explanation for the modifications will be provided within the standard or interpretation issued by the Accountant-General.
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