Version 9 - April 2025 (CUD release)
Content update information
This update confirms that the Singapore template includes Illustrative Model Content with legislative coverage for year end reporting until December 31, 2025.
- Financial period type: 12-Months (annual)
- Target industry type: Manufacturing, Services, and Generic (excluding Financial Services)
Legislative changes for upcoming December 2025 financial year
- Lack of Exchangeability – Amendments to IAS 21:
- The amendments to IAS 21 require entities to apply a consistent approach to assess whether a currency is exchangeable into another currency and, when it is not, to determine the exchange rate to use and the disclosures to provide.
- These amendments become effective for annual reporting periods beginning on or after January 1, 2025. Entities can adopt them early, but they must disclose this fact. Entities cannot restate comparative information when applying these amendments.
- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 and IAS 28:
- The amendments address inconsistencies between IFRS 10 and IAS 28 regarding the sale or contribution of assets between an investor and its associate or joint venture.
- Entities must recognize a full gain or loss when a transaction involves a business, regardless of whether it is housed in a subsidiary. They must recognize a partial gain or loss when a transaction involves assets that do not constitute a business, even if housed in a subsidiary.
- In December 2015, the IASB deferred the effective date of these amendments until they finalize any resulting amendments from their research project on the equity method. Early application is permitted and must be disclosed. Entities must apply the amendments prospectively.
- Classification and Measurement of Financial Instruments – Amendments:
- In May 2024, the Board issued amendments to IFRS 9 and IFRS 7, focusing on the classification and measurement of financial instruments.
- These amendments become effective for annual reporting periods beginning on or after January 1, 2026. Entities can early adopt amendments related to the classification of financial assets and related disclosures, and they can apply other amendments later.
- IFRS 18 – Presentation and Disclosure in Financial Statements:
- IFRS 18 introduces guidance on where to disclose information in the primary financial statements or notes. It enhances requirements for grouping information, using meaningful labels, and specifically disaggregating operating expenses for presentation and disclosure.
- IFRS 18 and related amendments to other accounting standards become effective for reporting periods beginning on or after January 1, 2027, and apply retrospectively, including interim financial statements. Early adoption is permitted and must be disclosed.
- IFRS 19 - Subsidiaries without Public Accountability: Disclosures:
- IFRS 19 simplifies financial reporting for eligible subsidiaries by enabling them to apply IFRS Accounting Standards with reduced disclosure requirements.
- As IFRS Accounting Standards are developed and amended, IFRS 19 will be amended alongside them to continuously reduce disclosure requirements for eligible subsidiaries.
- IFRS 19 becomes effective for reporting periods beginning on or after January 1, 2027, with earlier adoption permitted.
- Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company uses IFRS Accounting Standards for consolidated financial statements. If an eligible entity chooses to apply the standard earlier, it must disclose this fact.
- Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-Dependent Electricity:
- ASC issued amendments to IFRS 9 and IFRS 7 regarding contracts referencing nature-dependent electricity.
- The amendments clarify the application of the “own-use” requirements, permit hedge accounting if these contracts are used as hedging instruments, and add new disclosure requirements to help investors understand the effect of these contracts on a company’s financial performance and cash flows.
- These amendments become effective for annual reporting periods beginning on or after January 1, 2026, with earlier application permitted.
Accounting law changes for December 2025 financial year
- Amendments to FRS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability:
- In August 2023, ASC issued amendments to FRS 21 to specify how entities should assess whether a currency is exchangeable and determine a spot exchange rate when exchangeability is lacking.
- The amendments require entities to disclose information that helps users of financial statements understand how the lack of currency exchangeability affects, or is expected to affect, the entity’s financial performance, financial position, and cash flows.
- These amendments become effective for annual reporting periods beginning on or after January 1, 2025. Early adoption is permitted but must be disclosed. Entities cannot restate comparative information when applying these amendments.
- Amendments to FRS 109 and FRS 107 – Amendments to the Classification and Measurement of Financial Instruments:
- ASC amended FRS 109 and FRS 107 to address recent questions arising in practice and to include new requirements for both financial institutions and corporate entities.
- The amendments clarify the timing of recognition and derecognition of certain financial assets and liabilities, introducing a new exception for some financial liabilities settled through an electronic cash transfer system.
- They provide further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion.
- The amendments add new disclosures for instruments with contractual terms that can change cash flows, such as those linked to environmental, social, and governance targets.
- They update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
- These amendments apply to annual reporting periods beginning on or after January 1, 2026, with earlier application permitted.
- Amendments to FRS 109 and FRS 107: Contracts Referencing Nature-Dependent Electricity:
- ASC issued amendments to FRS 109 and FRS 107 to address contracts referencing nature-dependent electricity.
- The amendments clarify the application of the “own-use” requirements, permit hedge accounting when these contracts are used as hedging instruments, and add new disclosure requirements to help investors understand the impact on a company’s financial performance and cash flows.
- These amendments become effective for annual reporting periods beginning on or after January 1, 2026. Early application is permitted but must be disclosed.
- Entities must apply the clarifications regarding the ‘own-use’ requirements retrospectively, while they must apply the guidance permitting hedge accounting prospectively to new hedging relationships designated on or after the initial application date.
- Annual Improvements to FRSs Volume 11:
- In October 2024, ASC issued a collection of minor amendments under "Annual Improvements to FRSs Volume 11."
- These improvements aim to clarify wording in FRSs or correct minor unintended consequences, oversights, or conflicts between FRS requirements.
- Entities must apply these amendments for annual reporting periods beginning on or after January 1, 2026. Early application is permitted, and entities must disclose if they apply the amendments for an earlier period.
- Effective for annual periods beginning on January 1, 2027.
- FRS 118 Presentation and Disclosure in Financial Statements:
- FRS 118 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals.
- Entities must classify all income and expenses within the statement of profit or loss into five categories: operating, investing, financing, income taxes, and discontinued operations. The first three categories are new.
- Entities must disclose newly defined management-defined performance measures and subtotals of income and expenses. The standard includes new requirements for aggregating and disaggregating financial information based on the identified roles of the primary financial statements and the notes.
- Narrow-scope amendments to FRS 7 Statement of Cash Flows change the starting point for determining cash flows from operations under the indirect method from ‘profit or loss’ to ‘operating profit or loss’ and remove the optionality around classifying cash flows from dividends and interest.
- FRS 118 and the amendments to other standards become effective for reporting periods beginning on or after January 1, 2027. Early application is permitted and must be disclosed. FRS 118 will apply retrospectively.
- FRS 119 Subsidiaries without Public Accountability: Disclosures:
- In May 2024, ASC issued FRS 119, allowing eligible entities to apply reduced disclosure requirements while still following the recognition, measurement, and presentation requirements in other FRS accounting standards.
- To be eligible, an entity must be a subsidiary as defined in FRS 110, cannot have public accountability, and must have a parent (ultimate or intermediate) that prepares consolidated financial statements compliant with FRS accounting standards and available for public use.
- FRS 119 becomes effective for reporting periods beginning on or after January 1, 2027, with early application permitted.
- Amendments to FRS 110 and FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture:
- In November 2014, ASC issued amendments to FRS 110 Consolidated Financial Statements, amending paragraphs 25–26 and adding paragraph B99A.
- ASC also issued amendments to FRS 28 Investment in Associates and Joint Ventures, amending paragraphs 28 and 30, and adding paragraphs 31A–31B and 45C.
- Entities can apply these amendments earlier, and they must disclose if they do so.
- In December 2015, Accounting Standards Council (ASC) revised the mandatory effective date from January 1, 2016, to a date yet to be determined.
Early adoption for accounting standards
Earlier application for these accounting standards are permitted and must be disclosed.
Related Content
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Singapore IFRS
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