Process for Prescribing SB-FRS

Need for Separate Accounting Standards for Statutory Boards


Statutory Boards (SBs) 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 Singapore Financial Reporting Standards (SFRS) 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 SBs.

Framework for Accounting Standard for Statutory Boards


SFRS will remain the key guiding framework for the accounting standards for SBs. However, each SFRS will be individually considered, and where necessary, modifications will be made or additional guidelines will be issued to address the unique needs of SBs.

Issuance of SB-FRS


The accounting standards for Statutory Boards, prescribed by the Accountant-General will be known as the Statutory Board Financial Reporting Standards (SB-FRS). New Interpretations to SB-FRS (INT SB-FRS) may also be introduced in areas where SFRS does not provide sufficient guidance to SBs.

The Accountant-General also issues SB-FRS Guidance Notes primarily for the purpose of standardising certain accounting and disclosure treatment by SBs. SB-FRS Guidance Notes are not meant to be separate accounting standards from SB-FRS or INT SB-FRS.

There is no equivalent of SB-FRS Guidance Notes in SFRS.

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.