Key Supervisory and Regulatory Initiatives NEW REGULATIONS Facilitating the Implementation of FRS 39 From 1 January 2005, banks in Singapore are required under the Companies Act to comply with the requirements under a new accounting standard, Financial Reporting Standard (FRS) 39, on the recognition and measurement of financial instruments. To help banks implement FRS 39 for financial reporting purposes, MAS Notice 612 was revised to provide supervisory guidance on provisioning by banks for loan impairment. MAS, in consultation with the Association of Banks in Singapore (ABS), is also taking steps to align its regulatory reporting requirements, where appropriate, with FRS 39 requirements. In addition, MAS will review MAS Notice 608 on disclosure in financial statements by banks in line with these changes in accounting standards.