Invitation for Comments on IRAS Consultation on Income Tax Implications Arising from the Adoption of FRS 116 – Leases
The Inland Revenue of Singapore (IRAS) has issued a public consultation paper on the income tax implications arising from the adoption of FRS 116 Leases on 8 August 2017, with a submission deadline of 29 August 2017.
Please click here for IRAS public consultation paper.
ISCA welcomes feedback/views on income tax implications arising from the adoption of FRS 116 for sharing with IRAS.
Please submit written comments by 18 August 2017 to –
Corporate Reporting & Ethics Institute of Singapore Chartered Accountants 60 Cecil Street ISCA House Singapore 049709 Email: firstname.lastname@example.org
Invitation for Comments on Withdrawal of Recommended Accounting Practice (RAP) 8 Foreign Income Not Remitted to Singapore
In preparation for Singapore’s 2018 IFRS Convergence, ISCA’s Financial Reporting Committee (FRC) is undertaking a review of all Recommended Accounting Practices (RAPs) issued by ISCA. Please click here for the full list of RAPs.
RAP 8 Foreign Income Not Remitted to Singapore was issued in 2004 to fill a gap in FRS 12 Income Taxes by providing a recommended accounting practice on how an entity should account for deferred tax on its own foreign income not remitted to Singapore. The wording of FRS 12 is identical to that of IAS 12 Income Taxes and RAP 8 has existed in the Singapore financial reporting framework without an equivalent in the international financial reporting framework. With the forthcoming convergence of Singapore Financial Reporting Standards to International Financial Reporting Standards with effect from 1 January 2018, RAP 8 may be perceived to be inconsistent with IAS 12. Therefore, ISCA intends to withdraw RAP 8 with effect from 1 January 2018.
Please click here for a copy of RAP 8 for your reference.
Invitation for comments on intended withdrawal of RAP 8
In the event that RAP 8 is withdrawn, entities that have previously adopted the accounting practice in RAP 8 may have to consider the need to recognise deferred tax liabilities arising from foreign income not remitted to Singapore on a retrospective basis.
Cognizant of the possible impact of the withdrawal of RAP 8 to Singapore entities, ISCA’s FRC invites comments on the following questions.
Comments should be submitted in writing to email@example.com and to be received, no later than 31 July 2017.
Questions for Respondents
With due consideration for Singapore’s IFRS Convergence, ISCA intends to withdraw RAP 8 as RAP 8 is perceived to be inconsistent with IAS 12 Income Taxes.
Do you agree with the proposal to withdraw RAP 8? If not, why not?
In line with Singapore’s IFRS Convergence, RAP 8 will be withdrawn with effect from 1 January 2018 onwards.
Do you agree with the proposed effective date? If not, why not?
If RAP 8 is to be withdrawn, entities that have previously applied RAP 8 as their accounting policy in the financial statements would have to consider the impact on the financial statements retrospectively in accordance with the requirements in FRS 8 Accounting Policies, Changes in Accounting Estimates and Errors or IFRS 1 First-time Adoption of International Financial Reporting Standards.
a) Do you agree with the transitional accounting treatment? If not, why not?
b) How would this impact your company’s financial statements? Please provide us with the details of the impact.
Invitation for feedback/views on the implications of the new FRS 116 “Leases” to the current income tax treatment for leases, and changes to existing income tax rules
FRS 116 makes significant changes to the existing leases accounting by lessees especially with the removal of differentiation between operating lease and finance lease. Lessor accounting is also impacted but to a lesser degree. ISCA has prepared a paper on the key implications of FRS 116 and existing income tax treatment for leases.
ISCA welcomes feedback/views on tax implications arising from this change for sharing with the Inland Revenue of Singapore (IRAS).
Please click here for the Invitation for Feedback and Views.
Please submit written comments by 30 May 2017 to -
Financial Reporting Standards & Corporate Reporting Institute of Singapore Chartered Accountants 60 Cecil Street ISCA House Singapore 049709 Email: firstname.lastname@example.org
IFAC’s Exposure Draft on Developing and Reporting Supplementary Financial Measures
The International Federation of Accountants (IFAC)’s International Good Practice Guidance (IGPG) covers management accounting and financial management, as well as other broader topics which professional accountants in business, sometimes in conjunction with professionals from other disciplines, are likely to be engaged in. The aim of this IGPG, Developing and Reporting Supplementary Financial Measures, is to establish a benchmark for good practice in developing and reporting supplementary financial measures to assist management, investors, and other stakeholders in understanding some aspects of an organisation’s performance.
ISCA supports IFAC's efforts to issue the aforementioned IGPG.
Please click here for the exposure draft and here for ISCA's comment letter to IFAC.