国际财务报告准则在新加坡的应用(英文版)

A discussion about application of International Financial Reporting Standards in Singapore Introduction The problem of international economic accounting has become increasingly prominent with the development of multinational companies and the appearing of major regional economies in recession. It is becoming remarkable for International Financial Reporting Standards (IFRS) to solve the problem as a coordination solution. And because of the IFRS, making a country’s financial reporting standards in the accounting practice is not only confined to a country's scope, but expanding to the wide range of international. In the rise of multinational corporations with the development of international trade, the requirements of comparability of financial information would cause three problems of financial accounting: the consolidated financial statements, the foreign currency conversion as well as the price changes of accounting. They are also the three problems of international accounting. In addition, the tax system and tax law are different among countries to a certain degree.All of these, a unified standards are needing (Jamal & Tan, 2008). A global unified accounting standards applied to the company will benefit the enterprise at the aspect of decreasing the cost of enterprise guidelines to follow and the cost of user analysis. Furthermore, it also helps to decrease the chance of financial maneuver maliciously of enterprise and improve the efficiency of global market regulation. However, the building of unified standards is not so easy. There are many factors of influence should be considered, such as the political、economic、social、cultural、geographic and so on. At the meantime, the establishment of a unified criterion is controversial in the present. According To Information Statistics, there have already 138 countries adopted the International Financial Reporting Standards (IFRS). Besides those countries, there are also more and more countries approaching to the International Financial Reporting Standards (IFRS),such as China、Japan、America. About Singapore Singapore is a city country with strength and vigor whose land is narrow and the population density is high.( Online IFRS,2015) Singapore's economy not only in the first of the "Asian tigers", but also commercial services trade exports and imports are out 16 in the world. In the words of Singapore prime minister: they have achieved the goal in a generation time jumped to first world from the third world which could cost other countries more than one generation. Thus, we are interesting in exploring of its successful experience, such as some aspects their economic development. Now, we will take Singapore as an example. Singapore is based on international financial reporting standards to make the domestic accounting standards, in other words, following the accounting standards of Singapore means complying with the International Financial Reporting Standards (IFRS) approximately. From now on, we will discuss disadvantages and benefits which the practice of international financial reporting standards brings about in Singapore in the following paragraphs. Benefits Singapore, as an open-up country whose economic development depend on foreign investment mainly(Richard&Adrian 1996). Besides, Singapore has a relatively mature market environment to invest. And it is easy for Singapore, as an international country, to make a quick reaction to the new foreign demand brought by the change of the international economic situation. We can see that it’s formulation of accounting standards was following the pace of the international accounting standard setting and development closely. Singapore has been a member of the countries who apply the International Financial Reporting Standards (IFRS) to their own accounting standard setting as early as 2003. At the background of globalization, to achieve the goal of maximizing the profit, Multinational business activities must seek for more market opportunities which benefit their own development. The way to make a proper decision though making full use of accounting information to avoid risk could be a good choice. Capital market integration made investors looking for investment opportunities in the global scope, this trend would be a chance or a trap for the foreign investors. However, the company's financial statements under different accounting standards always confuse the investors. So, for the country who wants to absorb more investors, a clear and transparent standard used to reflect the condition of enterprise operation was necessary. Therefore, after adopting a unified international financial reporting standards, the result would satisfy the investors' demand of knowing the operation business situation，and benefiting to absorbing the foreign investors. At the same time, the International Financial Reporting Standards (IFRS) has got support from the United Nations (UN), the organization for economic cooperation and development (OECD), international federation of accountants and so on. Moreover, the world bank, Asian development bank, the London stock exchange and Hong Kong stock exchange which as the representative of the world's most stock exchanges all require the enterprises to follow the International Financial Reporting Standards (IFRS) to show financial statements, clearly and transparently.