| SIXTH SCHEDULE |
| Regulation 2(a) |
| Preface to the Interpretations of Financial Reporting Standards |
| This Preface to the Interpretations of Financial Reporting Standards (“INT FRSs”) was approved by the Council on Corporate Disclosure and Governance (“CCDG”) on 14th January 2003. |
| 1. The objective of the INT FRSs is to enhance the rigorous application of the Financial Reporting Standards (“FRSs”) and to improve comparability of financial statements that are prepared using the FRSs by interpreting potentially contentious accounting issues. |
| 2. Interpretations issued by the CCDG are part of the CCDG’s authoritative literature (see FRS 1, Presentation of Financial Statements). Therefore, financial statements should not be described as complying with the Financial Reporting Standards unless they comply with all the requirements of each applicable FRS and each applicable INT FRS issued by the CCDG. When a company has not adopted an INT FRS which has been published by the CCDG but which has not yet become mandatory, the company is encouraged to disclose the nature of the future change in accounting policy and an estimate of the effect on its net profit or loss and financial position, or a statement that such an estimate has not been made. |
| 3. Like the FRSs, the INT FRSs are intended to be as concise as the nature of a particular topic allows rather than detail rules dealing with every conceivable circumstance. The CCDG concentrates on essentials and it endeavours not to make accounting requirements so complex that they cannot be applied effectively. Above all, the application of the INT FRSs should be guided by the spirit and rationale behind the FRS Framework, the FRSs and the INT FRSs. |
4. The CCDG welcomes the submission of interpretative issues from all interested parties. The CCDG considers the following criteria in taking issues on its agenda:
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| 5. Contentious cases brought to the CCDG can lead to the issuance of an INT FRS, which is applicable on a general basis. Information on the latest INT FRS developments is available on the Internet: http://www.ccdg.gov.sg. |