Companies (Accounting Standards) (Amendment) Regulations 2004

No. S 401

Companies Act

Chapter 50

Companies (Accounting Standards) (Amendment) Regulations 2004

In exercise of the powers conferred by section 200A(1) of the Companies Act, the Accounting Standards Committee (known as the Council on Corporate Disclosure and Governance), with the approval of the Minister for Finance, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Companies (Accounting Standards) (Amendment) Regulations 2004 and shall come into operation on 1st July 2004.

Amendment of Second Schedule

2. The Second Schedule to the Companies (Accounting Standards) Regulations (Rg 6, 2004 Ed.) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by deleting the word “and” at the end of paragraph (h); and

(b)

by deleting the full-stop at the end of paragraph (i) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph:

“(j)	IFRS 1, “IFRS 2”, “IFRS 3”, etc., shall be read as “FRS 101”, “FRS 102”, “FRS 103”, etc., respectively.”.

Amendment of Third Schedule

3. The Third Schedule to the principal Regulations is amended —

(a)

by deleting the item relating to FRS 22 and all the entries relating thereto;

(b)

by deleting the item relating to FRS 36 and substituting the following item:

FRS 36

Impairment of Assets

IAS 36 (March 2004)

Impairment of Assets

(i)	Delete any reference to “31 March 2004” and substitute “1 July 2004”.

(ii)	Delete paragraph 139 of IAS 36 and substitute the following paragraph:

“139. Otherwise, an entity shall apply this Standard to goodwill and intangible assets acquired in business combinations and to all other assets prospectively for annual periods beginning on or after 1 July 2004.”.

(iii)

Delete paragraph 141 of IAS 36 and substitute the following paragraph:

“Withdrawal of FRS 36 (issued 2003)

141. This Standard supersedes FRS 36 Impairment of Assets (issued in 2003).”.

(iv)	Delete the paragraph immediately after the heading “Amendment to IAS 16” in Appendix B to IAS 36 and substitute the following paragraph:

“The amendment in this appendix shall be applied when an entity applies FRS 16 Property, Plant and Equipment (as revised in 2004). It is superseded when FRS 36 Impairment of Assets (as revised in 2004) becomes effective. This appendix replaces the consequential amendments made by FRS 16 (as revised in 2004) to FRS 36 Impairment of Assets (issued in 2003). FRS 36 (as revised in 2004) incorporates the requirements of the paragraphs in this appendix. Consequently, the amendments from FRS 16 (as revised in 2004) are not necessary once an entity is subject to FRS 36 (as revised in 2004). Accordingly, this appendix is applicable only to entities that elect to apply FRS 16 (as revised in 2004) before its effective date.”.

(v)	Delete “1998” in paragraph B1 of Appendix B to IAS 36 and substitute “2003”.

(vi)	Delete the following words in paragraph B1 of Appendix B to IAS 36:

“In the IASC Basis for Conclusions, in paragraph B14(b)(ii) a footnote is inserted after “incurred” at the end of the penultimate sentence, as follows:

*IAS 16 Property, Plant and Equipment as revised by the IASB in 2003 requires all subsequent costs to be covered by its general recognition principle and eliminated the requirement to reference the originally assessed standard of performance. IAS 36 was amended as a consequence of the change to IAS 16.”.”;

(c)

by deleting the item relating to FRS 38 and substituting the following item:

“

“FRS 38 Intangible Assets

IAS 38 (March 2004) Intangible Assets

(i)	Delete “1998” in paragraph 128 of IAS 38 and substitute “2003”.

(ii)	Delete any reference to “31 March 2004” and substitute “1 July 2004”.

(iii)

Delete paragraph 130 of IAS 38 and substitute the following paragraph:

130. Otherwise, an entity shall apply this Standard to the accounting for intangible assets acquired in business combinations and to all other intangible assets prospectively for annual periods beginning on or after 1 July 2004. Thus, the entity shall not adjust the carrying amount of intangible assets recognised at that date. However, the entity shall, at that date, apply this Standard to reassess the useful lives of such intangible assets. If, as a result of that reassessment, the entity changes its assessment of the useful life of an asset, that change shall be accounted for as a change in an accounting estimate in accordance with FRS 8.”.

(iv)	Delete paragraph 133 of IAS 38 and substitute the following paragraph:

“Withdrawal of FRS 38 (issued 2003)

133. This Standard supersedes FRS 38 Intangible Assets (issued in 2003).”.

”.

(d)

by inserting, immediately after the item relating to FRS 101, the following item:

“

“FRS 103

Business Combinations

IFRS 3

Business Combinations

(i)	Deleted any reference to “31 March 2004” and substitute “1 July 2004”.

(ii)	Deleted paragraph 78 of IFRS 3 and substitute the following paragraph:

78. Except as provided in paragraph 85, this FRS shall apply to the accounting for business combinations for annual periods beginning on or after 1 July 2004. This FRS shall also apply to the accounting for:

(a)	goodwill arising from a business combination for annual periods beginning on or after 1 July 2004; or
(b)	any excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of a business combination for annual periods beginning on or after 1 July 2004.”

(iii)

Delete “1998” in paragraph 86 of IFRS 3 and paragraph C18 of Appendix C to IFRS 3 and substitue in each case “2003”.

(iv)	Delete the first sentence immediately under the heading “Amendments to other IRFSs” in Appendix C of IFRS 3 and substitute the following sentence:

“The amendments in this appendix shall be applied to the accounting for business combinations for annual periods beginning on or after 1 July 2004, and to the accounting for any goodwill and intangible assents acquired in those business combinations.”.

(v)	Delete the heading “Introduction” in paragraph C4 of Appendix C to IFRS 3 and all paragraphs thereunder.

(vi)	Delete the following words in paragraph C5 of Appendix C5 of Appendix C to IRFS 3:

“On the title page, the second paragraph after the title of IAS 14 is amended to read as follows:

Paragraphs 129 and 130 of IAS 36 Impairment of Assets set out in disclosure requirements for reporting impairment losses by segment.”.

(vii)

Delete “2003” in Paragraphs C6, C11 and C15 of Appendix C to IFRS 3 and substitute in each case “2004”.

(viii)

Delete the heading “Basis for Conclusions” in paragraph C7 of Appendix C to IFRS 3 and all paragraphs thereunder.

(ix)	Delete “25 March 2002” in paragraph C18 of Appendix C to IFRS 3 and substitute “1 February 2003”..

”.

Amendment of Seventh Schedule

4. The Seventh Schedule to the principal Regulations is amended by deleting the items relating to “INT FRS 9”, “INT FRS 22” and “INT FRS 28” and all the entries relating thereto.

Made this 30th day of June 2004.

J Y PILLAY

Chairman,
Council on Corporate Disclosure
and Governance,
Singapore.

[F200203442K; AG/LEG/SL/50/2002/1 Vol. 8]

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