Media Releases
Published Date: 19 January 2017

Financial Reporting for Business Trusts and Collective Investment Schemes

Singapore, 19 January 2017... The Monetary Authority of Singapore (MAS) announced today that registered business trusts will adopt a new Singapore financial reporting framework that is identical to the International Financial Reporting Standards (IFRS), while authorised collective investment schemes will continue to prepare financial statements using accounting practices recommended by the Institute of Singapore Chartered Accountants (ISCA).

2   On 29 May 2014, the Accounting Standards Council (ASC) announced that Singapore-incorporated companies listed on the Singapore Exchange (Singapore listed companies) must apply the new Singapore financial reporting framework (New Framework) for annual periods beginning on or after 1 January 2018.

3   The ASC’s decision, however, does not cover financial statements of the following two categories of Singapore-constituted issuers under MAS’ purview :

(i) registered business trusts (Registered BTs1); and
(ii) authorised collective investment schemes, including real estate investment trusts (Authorised CIS2).

4   Taking into account feedback from the industry, and having considered practices in comparable jurisdictions, MAS has decided that :

(i) Registered BTs will be required to prepare financial statements in accordance with the New Framework for annual periods beginning on or after 1 January 2018.  This will align the treatment for Registered BTs with that of Singapore listed companies; and

(ii) Authorised CIS will not be required to prepare financial statements in accordance with the New Framework.  Authorised CIS should continue to prepare financial statements according to the Statement of Recommended Accounting Practice 7 : Reporting Framework for Unit Trusts (RAP 7), issued by ISCA. This treatment for Authorised CIS is consistent with practices in other major fund jurisdictions such as the United Kingdom and the United States of America.   

5   MAS will also be amending prospectus disclosure requirements3 to replace references to “FRS” with the New Framework with effect from 1 January 2018. MAS will provide transitional relief for historical financial statements in prospectuses lodged on or after 1 January 2018.  In addition to restating up to three years of historical audited financial statements fully to the New Framework in the prospectus, issuers of shares, debentures and units in business trusts will also have the option of using the transitional relief provided by MAS.  Details of the transitional relief arrangements are set out in Appendix A.


1 Under the Business Trusts Act (Cap. 31A), business trusts that are constituted in Singapore and whose units are offered to the public must be registered by MAS.

2 Under the Securities and Futures Act (Cap. 289), a public offer of units in a Singapore-constituted collective investment scheme must be authorised by MAS unless otherwise exempted.

3 Prospectus disclosure requirements are found in (i) Securities and Futures (Offers of Investments)(Shares and Debentures) Regulations 2005; and (ii) Securities and Futures (Offers of Investments)(Business Trusts)(No. 2) Regulations 2005.