Companies (Accounting Standards) (Amendment No. 2) Regulations 2006

Status:

Published in Subsidiary Legislation Supplement
on 25 Jan 2006

No. S 45

Companies Act

(Chapter 50)

Companies (Accounting Standards) (Amendment No. 2) Regulations 2006

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 No. 2) Regulations 2006 and shall come into operation on 1st February 2006.

Amendment of Third Schedule

2. The Third Schedule to the Companies (Accounting Standards) Regulations (Rg 6) is amended by inserting, immediately after paragraph (vi) in the third column of the item relating to FRS 21, the following paragraphs:

“(vii)

Insert, immediately after paragraph 15 of IAS 21, the following paragraph:

“15A. The entity that has a monetary item receivable from or payable to a foreign operation described in paragraph 15 may be any subsidiary of the group. For example, an entity has two subsidiaries, A and B. Subsidiary B is a foreign operation. Subsidiary A grants a loan to Subsidiary B. Subsidiary A’s loan receivable from Subsidiary B would be part of the entity’s net investment in Subsidiary B if settlement of the loan is neither planned nor likely to occur in the foreseeable future. This would also be true if Subsidiary A were itself a foreign operation.”.

(viii)

Delete paragraph 33 of IAS 21 and substitute the following paragraph:

“33. When a monetary item forms part of a reporting entity’s net investment in a foreign operation and is denominated in the functional currency of the reporting entity, an exchange difference arises in the foreign operation’s individual financial statements in accordance with paragraph 28. If such an item is denominated in the functional currency of the foreign operation, an exchange difference arises in the reporting entity’s separate financial statements in accordance with paragraph 28. If such an item is denominated in a currency other than the functional currency of either the reporting entity or the foreign operation, an exchange difference arises in the reporting entity’s separate financial statements and in the foreign operation’s individual financial statements in accordance with paragraph 28. Such exchange differences are reclassified to the separate component of equity in the financial statements that include the foreign operation and the reporting entity (i.e. financial statements in which the foreign operation is consolidated, proportionately consolidated or accounted for using the equity method).”.

(ix)

Insert, immediately after paragraph 58 of IAS 21, the following paragraph:

“58A. Net Investment in a Foreign Operation (Amendment to FRS 21), issued in 2006, added paragraph 15A and amended paragraph 33. An entity shall apply those amendments for annual periods beginning on or after 1 January 2006. Earlier application is encouraged.”.”.

Amendment of Seventh Schedule

3. The Seventh Schedule to the Companies (Accounting Standards) Regulations is amended by inserting, immediately after the item relating to INT FRS 106, the following item:

“

INT FRS 107

Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies

IFRIC Interpretation 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies

(There is no modification on IFRIC Interpretation 7).

”.

[G.N. Nos. S 401/2004; S 412/2004; S 521/2004; S 561/2004; S 124/2005; S 326/2005; S 546/2005; S 2/2006]

Made this 23rd day of January 2006.

J Y PILLAY

Chairman,
Council on Corporate Disclosure and Governance,
Singapore.

[F200402551T; AG/LEG/SL/50/2005/3 Vol. 1]

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