SINGAPORE-LISTED companies will adopt a new financial reporting framework similar to the International Financial Reporting Standards (IFRS) in 2018.
The move was announced by the Singapore Accounting Standards Council (ASC) and the Singapore Exchange (SGX) in a joint statement on May 29.
The ASC will continue to work with the Monetary Authority of Singapore and SGX on other related issues, they said.
This includes whether and when to extend the new financial reporting framework to other SGX-listed entities, such as real estate investment trusts and business trusts; and the transition arrangement for entities seeking to list on SGX.
Singapore-listed companies must now apply the new financial reporting framework for annual periods beginning on or after Jan 1, 2018.
Non-listed Singapore-incorporated companies may also voluntarily apply the new framework at the same time.
"Singapore has long been an advocate of a single global financial reporting language," said Mr Michael Lim, chairman of the ASC.
He said it would "place Singapore-listed companies on a level playing field with their counterparts in the IFRS community and eliminate any perception that they may be applying standards that are different from IFRS, even though they have been IFRS-compliant in a substantive manner for more than a decade."