国际财务报告准则在新加坡的应用(英文版).docx

A discussion about application of International Financial Reporting Standards in Singapore IntroductionThe 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 countrys 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 SingaporeSingapore 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.BenefitsSingapore, 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 its 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. Now, we will make a simply introduction about Singapore, and extend base on the perspective on the model of economic development in Singapore. As to its location, Singapore is one of the hubs connecting the Pacific and Indian oceans. From other aspects, as we all know, at the meantime, Singapore is also a member of the WTO and separate customs territory. The export-oriented economic development strategy was conducting in Singapore. Export-oriented economic development strategy means Export industrialization strategy. Specifically, to participate in international competition in a broad and deeper level ,try to absorbing foreign capital actively、releasing the limitation to foreign investment environment、encouraging exports、developing the labor-intensive industries by using of local labor resource advantages. （WTO.org,2015） Since 1996, Singapore was always putting significant proportion on developing service industry and information industry. And accelerating economic internationalization and liberalization, promoting a high science and technology base on the development of service industry and information industry. In recent years, the government advocates to conducting "regional economic strategy" and put forward to “creating new Singapore” and so on. Under these slogans, a series of measures are taken to speed up foreign investment、carry out varies economic activities actively and make up the  implementation of strategic plan to promote the transition from traditional economy to knowledge economy to promote economic restructuring. It is necessary for Singapore to choose international financial reporting standard as their accounting standard because of Singaporean economic development pattern( Preiato, Brown, & Tarca, 2013). Most important of all, many benefits would brought about though adopting the International Financial Reporting Standards (IFRS).More than one advantages can be list, such as enhancing the confidence of the international capital markets and making a more transparent international capital market. As we all know, to make the financial information comparable, there are too many obstacles to overcome between different countries. IFRS is a useful way to solve the problem mentioned above .Besides of those, the International Financial Reporting Standards (IFRS) can also help to lower the cost standards of enterprise and the cost of analysis for users to obtain useful information. Furthermore, a unified standard can improve the efficiency of global market regulation, and reduce the opportunity which, sometimes, ever-present enterprises repeat the investors through controlling their financial situation displayed. It is no doubt that those immoral and hoggish behaviors would damage the interests of foreign investors by misleading the investors to make the unwise judgment. In a word, the choice of International Financial Reporting Standards (IFRS) for Singapore can benefit to achieving the goal of absorbing foreign investment effectively and speeding up export-oriented economic development. Some practical examples can used to clarify, for example, under the condition of the Southeast Asian financial crisis of 1997; Singapore is the only one country whose model of financial was open and survived. Thats because Singapore has formed a good investment environment as adopting international financial reporting standards. For Singapore's attracting investment、foreign trade、 prosperity of the securities market，the international financial reporting standards have made a lot of contributions(Cotter, Tarca, & Wee, 2012). In view of the present development station, accounting standards in different countries tend to similitude today in pace with globalization of product and financial market. And that will be an inexorable trend. Most of countries in the world will make their accounting standards by considering the concrete national conditions based on the International Financial Reporting Standards (IFRS). Just talking about Singapore which has a mature capital market; it has already owned the advantage to attract foreign capital and foreign enterprises compared to other relatively closed countries. From other aspect to discuss about International Financial Reporting Standards bring out in Singapore. Singapore is a country where encourage export. Through executing the International Financial Reporting Standards, making the accounting of import and export more clear. That practice will bring obvious benefits to the development of Singapore's export business. In the era of economic globalization, the choice of practice International Financial Reporting Standards (IFRS) will be beneficial to the Singapores long-term development in the future not just limited in the present moment (Yaacob & Che-Ahmad, 2012). It is reported that Singapore accounting standards committee has announced that the accounting standard in Singapore will adopt the International Financial Reporting Standards (IFRS) totally to ask the joint stock limited company listed in Singapore to draw up their financial report begin with 2018(I, 2015).LimitationsIn consideration of different countries have their own culture、political、religious belief and so forth, there must be different social and economic situation in different countries. For instance, different development levels、different economic aspect .It is easy to know that no one standard can be guaranteed to fit all countries. International Financial Reporting Standards (IFRS) as a unified standard applying to so many countries, it will make a significance influence on the worldwide pattern of interests distribution. From the development of Singapore, International Financial Reporting Standards (IFRS) shows that the accounting in Singapore becomes more and more international. But there are some bad results caused by IFRS. For example, conflict between domestic and international benefits may happen, in other words, if companies in Singapore completely follow IFRS, the cost of these companies will increase substantially, which has negative influence on attracting foreign capital and protect the benefits of investors. As a nation with a export-oriented economy policy, it is likely to avoid these results if Singapore sets the accounting standards benefiting itself according to domestic condition. However, a series of advantages must be lost brought by IFRS. It is clear that these problems have been paid much attention in Singapore and IFRS is not completely accepted blindly, so that this nation accepts IFRS selectively. Namely, foreign companies listed in Singapore are allowed to follow IFRS,GAAP and FRS to make financial report, what is more , abandoning the rule that these foreign companies must adjust the financial statements which follows GAAP or IFRS into ones which follow FRE(financial report standards set by Singapore)( FAROOQUE & YARRAM, 2013). The policy plays an important role to attract foreign investment and protect benefits of investors. In a word, all aims are to serve this nation and the society. In addition, Singapores accounting system is set by the institute of certified public accountants and auditing, from the development of Singapore's accounting standard; we can see clearly that Singapore's accounting system is close to International Financial Reporting Standards (IFRS), gradually. As we all known, Singapore's accounting standards are set by the civil organizations and the social people from all walks of life together, this also fully embodies the universality of its accounting standards. (Businessteacher.org.uk, 2015） Thats to say, International Financial Reporting Standards(IFRS) was fit Singapores model of economic development and promote it also satisfy the demand of the people. However, just copying the International Financial Reporting Standards (IFRS) could lead to failure and short-sighted. And some reasons can be used to explain it. First, the differences in reality cannot be ignored among nations. Second, International Financial Reporting Standards face a number of challenges: how to coordinate the relationship between improving the degree of openness of International Financial Reporting Standards and maintaining financial stability ;how to deal with the differences between International Financial Reporting Standards(IFRS) and US General Accepted Accounting Principles(US GAAP); how to coordinate the relationship between “the world recognition” of International Financial Reporting Standards and “the local influence”; how to deal with the relationship between the principle-based mode and the rule-based mode of International Financial Reporting Standards ,in other words, how to provide more operational guidelines when preserving the principle-based mode, and so forth.ConclusionIt can be learned from this case about Singapore that IFRS can be viewed as a sword with double edges which has both advantages and disadvantages. And for a purpose of serving more nations better, IFRS has been improving. The changes of development of contents of International Financial Reporting Standards start from 2001 years(Ghedrovici, Mihaila, Erhan, & Birca, 2014). Preceding standards, namely International Accounting Standards (IAS), have become sounder and more general after modified, in terms of the international social economic field. Of course, there exist more and more countries which choose or close International Financial Reporting Standards, and as a result, the accounting standards of these countries trend to be s