The International Financial Reporting Standards (IFRS), as the benchmark is known, is already used by 113 countries. By 2011, the standards will be in place in 150 nations.

Finance Minister Tharman Shanmugaratnam announced the step on Wednesday, stating that aligning companies in Singapore with international standards would 'further reinforce Singapore's role as an international business and financial hub'.

He said having global standards would eliminate any remaining financial reporting costs for Singapore-listed companies operating in more than one jurisdiction and help them participate in international capital markets.

'It will also provide international investors with the assurance of global comparability and transparency when they invest in Singapore,' added Mr Tharman, who was giving the keynote address at the KPMG Asia-Pacific IFRS Conference at Grand Copthorne Waterfront Hotel.

Singapore's move was welcomed by Mr Warren McGregor, a member of the International Accounting Standards Board.

'It will continue to reflect the important role Singapore has played in the development of accounting standards and quality financial reporting,' he said.

China and South Korea have announced they will adopt the standards, while Hong Kong and Australia are already fully compliant.

Mr Tharman said local companies have 'generally been 'IFRS-ready' and 'IFRS-compliant' in a substantive manner for a number of years now'.

The Singapore Exchange said there are 616 locally incorporated firms listed here. Incorporated means the firms were founded here.

Read the full story in Thursday's edition of The Straits Times.