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Financial Reporting and
Accounting News
Singapore |
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Welcome to the May 2024 issue of Financial Reporting and Accounting Updates, your regular digest on the latest developments on environmental, social and governance (ESG), and accounting updates.
In this issue, we shine the spotlight on IFRS 18, ‘Presentation and Disclosure in Financial Statements’. While the standard will not impact the recognition or measurement of items in the financial statements, it might change what an entity reports as its ‘operating profit or loss’. The changes in presentation and disclosure required may require system and process changes for many companies, so companies should focus now to be ready for adoption.
Our PwC International Financial Reporting Standards (IFRS) podcasts and publications provide you with key insights and guidance into various accounting and ESG topics. Tune in to our podcasts to find out about IFRS updates in Q1 2024, and catch up on the latest updates in the global sustainability reporting world.
Read our publications for latest updates including another new standard from the International Accounting Standards Board (IASB) – IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’. Catch up on the latest updates in the sustainability reporting world both locally and globally, such as the mandatory climate reporting and assurance requirements in Singapore, the requirements by the U.S. Securities and Exchange Commission (SEC) and the requirements for companies listed on some stock exchanges in China. Do also spend some time to read the Guide on Renewable Energy Certificates (RECs) which may be useful for you, if your entity purchases RECs.
We hope you find this useful and feel free to share this with your colleagues who may be interested. |
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Warmest regards,
PwC Singapore |
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| IFRS 18 is here: redefining financial performance reporting
On 9 April 2024, the International Accounting Standards Board (“IASB”) issued its new standard, IFRS 18 Presentation and Disclosures in Financial Statements that will replace IAS 1 Presentation of Financial Statements. The new standard aims to give investors more transparent and comparable information about companies’ financial performance, enabling them to make better investment decisions.
IFRS 18 is applicable to all financial statements that are prepared and presented in accordance with the IFRS Accounting Standards, and will be effective for annual reporting periods beginning on or after 1 January 2027, including for interim financial statements. The new standard is applied retrospectively, and so comparative information needs to be prepared under IFRS 18.
General Overview
Treasury Centres
Financial Services
Listen to an overview of the new standard and top tips for implementation |
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| Quarterly IFRS Update - April 2024
Tune in to our Quarterly IFRS Update for Q1 2024, where we give an update on net zero commitments, importance of quality disclosures, a global minimum tax update and new requirements effective in 2024. |
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| FAQs on the SEC climate disclosure rules
While there is a stay on the US SEC Climate Disclosure Rules, the guidance is still applicable, as companies look to prepare for multiple reporting scenarios. Listen to our podcast for discussions on some of the frequently asked questions such as scenario analysis, materiality and financial statement impacts. |
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| Sustainability snippets
Tune in to this series of mini videos which aims to provide you with an overview of which is happening in the global sustainability reporting world. |
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Publications and news: IFRS |
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| Simplifying disclosure requirements for certain subsidiary financial statements: A glimpse at IFRS 19
On 9 May 2024, the IASB issued another new standard: IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’. The new standard reduces disclosure requirements for eligible subsidiary financial statements. This 'In brief' highlights some key elements. |
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| The IASB proposes accounting changes for renewable electricity contracts
The IASB has published an exposure draft, proposing narrow-scope amendments to IFRS 7 and IFRS 9 to help entities better reflect the effect of entering into contracts for renewable electricity. Our In brief gives you an overview of the proposals. |
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Publications and news: Sustainability |
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| Updated on Sustainability Reporting Regulations in Singapore
On 28 February 2024, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) have provided details of mandatory climate reporting and assurance requirements for listed issuers and large non-listed companies. |
| Following the finalised climate reporting rules, on 7 March 2024, SGX RegCo has also proposed amendments to the Mainboard Rules and the Catalist Rules to reflect the finalised climate reporting rules. |
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| Guide on Renewable Energy Certificates (RECs)
The Guide on RECs which was prepared in collaboration with the Association of Singapore Listed Companies (SGListCos) has been launched. This guide focuses on the considerations for entities which purchase RECs. It provides entities with an introduction to RECs, and how they may use RECs to reduce their Scope 2 market-based emissions.
Key highlights include: |
• | Introduction to RECs | •Introduction to RECs | • | How to use RECs | •How to use RECs | • | Key challenges of using RECs | •Key challenges of using RECs | • | Accounting, Reporting and Assurance for purchased RECs | •Accounting, Reporting and Assurance for purchased RECs |
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| Navigating the SEC climate-related disclosure requirements
On March 6, 2024, the SEC adopted its highly anticipated rules which will result in a significant expansion of required climate-related disclosures in SEC filings. The required disclosures are included in Regulations S-K and S-X and cover strategy, governance, risk management, targets and goals, greenhouse gas emissions, and financial statement effects. The rules provide phased effective dates and transition provisions, with some entities required to adopt most elements of the rules as early as 2025.
On April 4, 2024, the SEC stayed its climate disclosure rules to “facilitate the orderly judicial resolution” of pending legal challenges. Companies are encouraged to think holistically about the range of their sustainability reporting obligation, and develop systems, processes, and controls, which will position a company to produce high-quality data in support of any current or emerging sustainability reporting responsibilities. |
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| Guidelines on Self-Regulation of Listed Companies – Sustainability Report (Trial) of the People's Republic of China
Three stock exchanges in China issued their guidelines on sustainability report disclosure requirements. The guidelines will become effective 1 May 2024, applying to annual periods ending 31 December 2025. This ‘In brief’ provides companies who are listed on these stock exchanges in China a high-level look at these reporting issues. |
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| EFRAG and ISSB jointly publish interoperability guidance
On 2 May 2024, the IFRS Foundation and European Financial Reporting Advisory Group (EFRAG) jointly published interoperability guidance on climate-related disclosures for sustainability reporting. This guidance illustrates the high level of alignment of the climate-related disclosures in the IFRS® Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS). Companies are recommended to consider the interoperability guidance as a way to improve efficiency of reporting under both sets of standards. |
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Explore moreClick here to visit our website for more of our latest insights. |
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