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Countdown to Adopting SFRS(I) 9, 15 & 16.



The transition date to adopting SFRS(I) 9 ‘Financial Instruments’ and SFRS(I) 15 ‘Revenue from Contracts with Customers’ has already passed. We warn anyone contemplating delaying transition to the last moment.

By 15 May 2018, Singapore listed entities with December year-ends will have lodged their first quarterly financial reports as at 31 March 2018 with comparative as at 31 March 2017.

The challenge of adopting SFRS(I) 15 cannot be underestimated. The standard will change the pattern of revenue recognition for most entities. In a significant number of cases, adoption of SFRS(I) 15 will result in the recognition of revenue in a pattern that does not correspond to the amount invoiced to the customer.


SFRS(I) 9 & 15 KEY DATES FOR SGX LISTED ENTITIES (as at 31 December 2017)



The mandatory adoption of SFRS(I) 16 ‘Leases’ is one year later than SFRS(I) 9 & 15. However, entities should consider whether to early adopt the standard in 2018 to provide a stable reporting platform going forward.

The accounting headlines of applying SFRS(I) 16 are:

  • There is no such thing as rental expense;
  • All leases come on balance sheet;
  • An entity’s net current assets will decrease; and
  • An entity’s EBITDA will improve.

Again, the implementation challenges should not be underestimated. One area of complexity is determining which contracts contain leases, as the requirements are pervasive and require a review of service contracts to see if they contain assets that are in scope of SFRS(I) 16. For contracts that contain leases, companies are required to set up a right of use asset register and calculate the lease liability for each leased asset. Systems and processes are required to calculate asset amortisation and the finance costs arising from leased assets.


SFRS(I) 16 KEY DATES FOR SGX LISTED ENTITIES (as at 31 December 2017)